| • | This Frequently Asked Questions (FAQ) document has been issued to help parties wishing to apply to SAMA’s Regulatory Sandbox.
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| | It aims to provide clarifications to some of the most asked and general questions we receive, from interested parties. The FAQ’s will be reviewed and updated on a regular basis.
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| • | What is the purpose of the Regulatory Sandbox?
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| | The Regulatory Sandbox allows new business models/concepts to be launched into the market for testing in a live environment within predefined parameters, provided that they are not regulated or covered by existing rules..
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| | These parameters includes, but not limited to, the number of clients, volume of transactions, value of transactions, etc...
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| • | What are the benefits of the Regulatory Sandbox?
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| | SAMA seeks to achieve a number of benefits through the Regulatory Sandbox including launching innovative business models/concepts, products, services which are not regulated or covered by existing rules. Besides, it will enable the Regulator to observe, analyze and identify potential risks related to new business models prior to the official launch.
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| • | Which entity is empowered to give consultation to applicants wishing to provide innovated services?
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| | Interested parties should reach out to the Advice Team within SAMA at (sandbox@sama.gov.sa) who can discuss this with you prior to a formal submission.
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| • | How do I apply to the Regulatory Sandbox?
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| | Applicants should use the latest version Regulatory Sandbox Application Form available at the Regulatory Sandbox page on the SAMA website.
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| • | Do I have to submit my application by a specific date?
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| | SAMA’s Regulatory Sandbox has now changed to an Always Open Model. Applicants can prepare their documentation as per the requirements and submit their application at their convenience.
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| • | I have applied to the Regulatory Sandbox previously, can I apply again?
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| | The Regulatory Sandbox will look at new application requests based on the business model/concept being proposed.
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| | Applicants may apply for a new request, given that they have prepared new application
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| • | What exemptions will I receive if I apply to the Regulatory Sandbox?
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| | Each application is looked at on its merits, new products and services. The Regulatory Sandbox Framework document on the SAMA website provides guidance on the types of exemptions that can be considered during the Sandbox testing period.
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| • | There are already regulations available for my proposition; can I still apply to the Regulatory Sandbox?
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| | The Regulatory Sandbox is exclusive for new business models/concept where no regulatory framework or licensing requirements exist. If there is already an exist path to licensing, then applications would not be accepted.
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| • | Can I carry on tests with banks and other financial institutions before acceptance to the Regulatory Sandbox?
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| | Banks and other financial institutions can only allow testing in their development environments with dummy data.
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| | No live data usage or testing in the production environment is permitted for use by any company, which is not permitted by SAMA.
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| • | Once my application is approved, can I launch my products and services in the market?
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| | The Regulatory Sandbox is made up of 3 stages:
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| | Stage 1 - Application,
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| | Stage 2 - Ready to Testing,
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| | Stage 3 - Testing.
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| | Once an application is deemed suitable for the Regulatory Sandbox, the applicant will work closely with the Risk Management Unit to ensure they meet the Assessment Criteria requirements. Once these requirements are met, they will be provided with the Letter of Acceptance (LoA) to commence operations with live customers and data.
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| • | How will I be able to inform customers and other entities that I have been accepted into the Sandbox so we can commence with integration testing?
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| | At application acceptance stage, SAMA will issue a formal No Objection Letter (NOL) to the applicant which can be used as confirmation they have been approved to commence to the Regulatory Sandbox Stage 2 - Operational Readiness. This will give confirmation to relevant parties they may connect their systems with the applicant and commence integration testing into a development environment using dummy data. No access will be granted at this stage to live customer data or the production environment.
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| • | How long can my proposition test with live customers in the Regulatory Sandbox?
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| | The Testing Stage lasts for a minimum period of 6 months and up to 12 months.
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| • | What does successful testing mean?
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| | Each applicant will define testing requirements for their business model/concept.
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| | In addition, SAMA will add requirements, which will include user satisfaction, resilience, stability, scalability amongst others.
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| • | If my testing is successful in the Regulatory Sandbox, will I automatically be granted a full license?
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| | During Stage 2 - Readiness, applicants will be provided a list of general licensing requirements and a high- level roadmap with milestones to work towards during Stage 3 Testing stage.
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| | Once the specific licensing requirements are issued for the new business model/concept, applicants will need to fulfil these requirements and then submit their license application to the relevant functional team at SAMA.
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| | The Licensing Team will then review and assess the application on its merits against the compliance requirements set out in the licensing application.
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| • | At what stage do I apply for a full license?
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| | SAMA expects the licensing process to commence after a minimum period of 6 months and by month 9 of the Testing stage.
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