The Central Bank of Ireland has launched its first “innovation sandbox programme,” introducing seven private-sector ventures focused on tackling financial crime.
The initiative provides a controlled environment for testing new technologies, enhancing collaboration between the central bank and the fintech sector, and advancing solutions to combat fraud, improve know-your-customer (KYC) processes, and strengthen transaction security.
The programme aims to foster innovative technologies that minimize fraud, enhance anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks, and address growing threats in financial crime, according to an official announcement.
Selected from a pool of 38 applications, the participants include startups, scaling firms, and established companies from Ireland, Europe, and the UK.
France-based Expleo has developed an anti-SMS fraud solution designed to combat text-based scams on mobile devices.
Dublin-based Vidos is focused on digital identity verification, providing tools for financial institutions to authenticate digital documents and wallet-based credentials.
Lithuania’s AMLYZE is building an AML/CFT information-sharing framework using structured taxonomies and synthetic data to simplify fraud detection and prevention.
Two joint projects also feature in the programme. Forward Emphasis (Ireland) and Pasabi (Scotland) are collaborating on a motor insurance application fraud analytics solution leveraging artificial intelligence, machine learning, and behavioral analytics.
Sedicii and Permanent TSB, both based in Ireland, are developing a real-time KYC verification system using zero-knowledge proofs, with ESB Networks serving as the address data authority in compliance with GDPR.
Other participants include the UK’s TrustElevate, which offers privacy-preserving solutions for verifying child age and parental responsibility, and Netherlands-based Roseman Labs, enabling GDPR-compliant data collaboration for regulated industries.
The sandbox includes monthly workshops, personalized engagement with sandbox managers, regulatory guidance, and access to datasets and tools relevant to combating financial crime. The programme’s methodology and outcomes will undergo continuous assessment to ensure effectiveness.
By launching the sandbox, the Central Bank of Ireland seeks to deepen its collaboration with innovators and address the evolving challenges of financial crime, positioning Ireland as a hub for fintech advancement.