IRELAND Trends and Developments Contributed by: Christopher Martin, Derek Hegarty and Nicola Munnelly, KPMG Law
control over their financial data. The proposal covers specific data relating to financial services and products, for example loans, and payment accounts, investments, and crypto-assets. Data holders and data users will include most regu - lated entities. The proposal requires the data holder to make data available to both the customer and a data user without undue delay, continuously, and in real-time, when requested by the customer. The data must be made available to the customer free of charge, but the data holder may charge data users subject to a data sharing scheme. The data user can only access customer data if they have prior authorisation by a competent authority as a financial institution or under a new authorisation for financial information service providers (FISPs), and only under the permis - sion given by the customer and the customer can withdraw this permission. FiDAR has the potential to radically alter the way customer data is shared and aims to help in developing innovative new products and solu - tions by empowering consumers and encour - aging digitalisation. It also has the potential to improve customer experience in both face-to- face and online advice processes through the effective use of customer data. Fintechs should be well-positioned to take advantage of the new rules under FiDAR. Effective and early engage - ment with internal stakeholders, including the board, compliance teams, product teams, and IT department, to explore how best opportunities under FiDAR can be leveraged effective access and use of customer data can help them develop and provide services to customers will therefore be key. Central Bank innovation sandbox The Central Bank launched its Innovation Sand - box Programme in December 2024 with the
theme of combatting financial crime. It aims to provide a platform to help develop technologies to minimise fraud and further enhance the estab - lished AML/CFT frameworks through the use innovative technology solutions. The purpose of this new programme is to provide early-stage development to innovative initiatives that help increase consumer and financial outcomes. The reasons that that this programme was launched is that the financial system is a key aspect of the economy of Ireland, and an effi - cient and resilient financial system is a funda - mental aspect of providing consumers and investors with trust; financial crimes erode and undermine stability and trust in the financial sys - tem. With technology growing at such a fast race there is a concern that this growth is outpac - ing the Central Bank’s ability to provide stability and safety. With over EUR1 trillion lost to scams globally in 2023 alone, and EUR9.9 million lost Authorised Push Payment scams lost in Ireland in 2022, the sandbox looks to provide an innova - tive and collaborative approach for finding solu - tions to increasingly inventive acts of fraud by scammers. Seven selected participants have been chosen to participate, with focussing on a separate area of concern. For example, AMLYZE is developing an AML/CFT information sharing framework that will help detect and prevent fraudulent activities. The sandbox aims to encourage collaboration across the financial ecosystem to help minimise financial crime. It will do so through structured programme workshops each month presented by the participants on relevant topics. The Pro - gramme will also offer bespoke engagement with dedicated Sandbox Relationship Manag - ers. These managers will have the ability and access to liaise with broad range of the Central Banks teams, such as those working in Con -
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