The EBA recommends SupTech for effective AML/CFT supervision

The European Banking Authority (EBA) has released a report on the use of supervisory technology (SupTech) in anti-money laundering (AML) and countering the financing of terrorism (CFT) supervision.

The report reviews current innovation efforts by EU competent authorities and explores how SupTech tools can enhance the implementation of the new EU AML/CFT framework.

It highlights that 47% of identified tools or projects are in production, 38% are under development, and 15% are in exploratory phases. Benefits of implementing SupTech into an AML/CFT regime include improved data quality, better collaboration, and more efficient risk identification.

Challenges include limited resources, legal uncertainties, and data governance issues. The report outlines effective practices in change management, data, technology, and supervisory strategies to support a risk-based, data-driven, and scalable AML/CFT supervisory model.