IFWG Website IFWG_Regulatory_Sandbox

Firms accepted into the IFWG’s regulatory sandbox

This webpage lists all firms which are currently testing and those which have completed testing. It should be noted that participation does not in any form, explicit or otherwise, indicate approval and/or support of the participant or its product or service.

Participants currently active in the IFWG RSB

The following firms have been accepted into the IFWG RSB and are currently testing.

Participants	Participant's core business	What is in the sandbox	Testing status
Secure FX Trade (Proprietary) Limited (Secure FX) Access Bank (South Africa) Limited (Access Bank SA)	Secure FX is a regulated and registered boutique Treasury Advisor assisting clients with navigating exchange control regulations and facilitating cross-border payments through an Authorised Dealer. Access Bank SA is a registered commercial bank and Authorised Dealer in foreign exchange with access to a subsidiary banking network, and representative offices across three continents through Access Bank Plc.	In terms of reporting requirements, each and every cross-border transaction must be reported to the SARB. This sandbox use case will explore mechanisms for an international merchant to collect payments from their resident clients in South Africa and remit the funds offshore as a collective sum, while complying with the cross-border reporting requirements. The purpose of testing is to inform: Collection and verification of information from data sources to ensure compliance with Anti-Money Laundering/Combating the Financing of Terrorism and Proliferation (AML/CFT/CPF) obligations in terms of the Financial Intelligence Centre Act, 38 of 2001. Collection of payments from multiple sources through multiple payment channels into a single account whilst ensuring that accurate records on the original source of funds are maintained. Granular level Balance of Payments (BoP) reporting for multiple clients linked to a single cross-border payment (many reports to one payment) aligned to the SARB’s reporting requirements as set out in the Exchange Control Regulations. Access Bank SA will monitor and report the cross-border payments.	Testing has been completed and close-our procedures initiated
Flash Mobile Vending (Pty) Ltd	Flash is a fintech and a licensed financial services provider which distributes, inter alia, airtime, data, and electricity tokens via its proprietary handheld point of sale devices (“Flash Device”) in the informal retail sector (e.g. spaza shops). Customers can also pay their store accounts or bills at a store through a Flash Device.	Flash, through its affiliated agents using the Flash Devices, will be allowed to facilitate the collection of insurance premium payments for Nyaradzo Financial Services (Pty) Ltd (Nyaradzo), a licensed micro insurer. Flash has been granted exemption from certain clauses of the Long-Term Insurance Act, 1998 (Act No.52 of 1998) and the Financial Advisory and Intermediary Services Act, 2002 for the duration of testing in order to accept insurance payments from policyholders on behalf of Nyaradzo.	Currently testing
Ozow Proprietary Limited (Ozow) Secure FX Trade (Proprietary) Limited (Secure FX) Access Bank (South Africa) Limited (Access Bank SA)	Ozow is an account-to-account payment services provider for domestic transfers within South Africa. Secure FX is a regulated and registered boutique Treasury Advisor assisting clients with navigating exchange control regulations and facilitating cross-border payments through an Authorised Dealer. Access Bank SA is a registered commercial bank and Authorised Dealer in foreign exchange with access to a subsidiary banking network, and representative offices across three continents through the Access Bank PLC group.	Linking and reporting (to the Financial Surveillance Department of the South African Reserve Bank) multiple client retail transactions with a single cross-border payment and testing compliance, with exchange control requirements. Limitations on testing include an expected monthly transaction value for the international merchant as well as an expected average transaction value of R1 500, by a restricted number of South African consumers who will be allowed to perform online payments to an international merchant by paying directly from their domestic bank accounts, via the local electronic funds transfer (EFT) rails. The Authorised Dealer, Access Bank SA will monitor and report the cross-border payments. The purpose of testing is to inform considerations surrounding whether regulators could enable such payment aggregation for low-value payments to international merchants using local EFT credit transactions.	Testing has been completed and close-out procedures initiated
Notto	Credit bureau business	Notto sought to demonstrate that financial services providers will be willing and able to provide credit based on consumers’ Notto credit scores.	Testing has been completed and close-out procedures initiated
The Standard Bank of South Africa Limited (Standard Bank)	Standard Bank is a financial institution that offers banking and financial services to individuals, businesses, institutions and corporations in Africa and abroad.	The sandbox test will explore the tokenisation of an existing Standard Bank 1nvest exchange-traded fund (ETF) on the bank’s Aroko blockchain platform. The solution should enable clients to transact on a single platform, in a safe and efficient manner. The objective of the testing is to explore the impact of tokenising a financial instrument on existing legislation and regulation.	Testing has been completed and close-out procedures initiated

Previous IFWG RSB participants

Cohort Approach (April 2020 to September 2022)

Firm	Firm's core business	What was in the sandbox	Exit from the RSB	Outcome
The Standard Bank of South Africa Limited (Standard Bank)	Standard Bank is a financial institution that offers banking and financial services to individuals, businesses, institutions and corporations in Africa and abroad.	Standard Bank tested the reporting of cross-border foreign exchange transactions submitted to the SARB’s FinSurv, utilising the Standard Bank Aroko blockchain platform and verifying that the reporting is timely and in compliance with all relevant reporting rules, as prescribed in the Business and Technical Specifications. The reporting tested happened in parallel with the existing reporting process and clients were not impacted.	Testing was successfully completed during September 2022.	Cross-border payments reporting.pdf
Xago Technologies (Xago)	Cross-border remittances	Xago tested the regulatory treatment of crypto assets – specifically Ripple (XRP) – in terms of the Exchange Control Regulations, promulgated in terms of section 9 of the Currency and Exchanges Act, used for effecting cross-border transactions between South Africa and the United Kingdom, and vice versa, subject to certain limits prescribed by the relevant authorities and reporting on such transactions to the relevant authorities.	Testing was completed during April 2022.	Cross-border crypto asset payments.pdf
Investec Bank Limited (Investec)	Investec provides specialist banking as well as wealth and investment services to individuals, businesses and intermediaries.	Investec tested a safe custody service for crypto assets through its innovative Digital Asset Vault (DAV) offering. The DAV is intended to be a secure mechanism for Investec clients to store and transfer crypto assets and reduce reliance on cold storage (i.e. complex hardware wallets and/or crypto asset exchanges). The objective of testing the DAV in the sandbox was primarily to test Investec’s regulatory compliance, regulatory reporting processes and related risk management frameworks, in collaboration with the IFWG.	Testing was successfully completed during March 2022.	Crypto assets - Safe custody service.pdf
Santam	ISantam offers general insurance products and services in Southern Africa and internationally.	Sandbox testing seeks to clarify the treatment and appropriate regulatory framework for index insurance as an insurance product. This will be done by conducting tests on Santam’s Soil Moisture Index product offering.	Testing was successfully completed during March 2022.
Centbee - Minit Money	Innovating digital payments	Centbee tested the regulatory treatment of crypto assets – specifically Bitcoin (BTC) and Bitcoin Satoshi Vision (BSV) – for low-value cross-border remittances between South Africa and Ghana and vice versa.	Testing was successfully completed during August 2021.	Cross-border crypto asset payments.pdf
Mercury FX (Mercury)	International payments	Mercury tested the regulatory treatment as well as the associated regulatory reporting implications and obligations of crypto assets (specifically XRP) being used for effecting low-value cross-border remittances between South Africa and the United Kingdom and vice versa, subject to certain limits prescribed by the relevant authorities. Testing was, in the main, done in terms of the South African Exchange Control Regulations 1961 (Exchange Control Regulations), promulgated in terms of section 9 of the Currency and Exchanges Act 9 of 1933 (Currency and Exchanges Act).	Testing was successfully completed during August 2021.	Cross-border crypto asset payments.pdf
The People’s Fund	The People’s Fund is a crowd-investing platform that facilitates raising capital for micro, small and medium-sized enterprises with consumers willing to invest. The investments are used to fund these organisations’ purchase orders, products or assets.	The sandbox sought to clarify the treatment and appropriate framework for the intermediation of crowd-investing platforms.	Testing was successfully completed during July 2021.	Crowdfunding.pdf