EBA says SupTech can make CFT and AML more effectual
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EBA says SupTech can make CFT and AML more effectual 18 August 2025France Reporter: Tahlia Kraefft
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The European Banking Authority (EBA) has released a new report detailing how supervisory technology (SupTech) tools can aid in combatting money laundering and preventing the financing of terrorism supervision.
The report examined the effectiveness of the EU authorities’ existing measures in their tackling of financial crime and lists proposals for the implementation of the updated anti-money laundering (ALM) and countering the financing of terrorism authority (CFT) framework.
The newly established Anti-Money Laundering Authority (AMLA), will organise the oversight of the latest framework.
The report outlines effective practices where SupTech can help facilitate a model that is increasingly data-driven, risk-based and scalable incorporating the AML/CFT framework.
SupTech use in the AML/CFT section is still developing, with almost half of the tools or projects pinpointed being generated, an additional 38 per cent being progressed and 15 per cent still in experimental phases.
According to the report, national competent authorities who used SupTech have seen concrete improvements with greater data quality, better collaboration and more productive risk identification.
The use of SupTech in asset servicing has the potential to enhance risk management, improve data recording, computerise systems, and increase productivity.
Despite this, obstacles such as data quality problems, legal uncertainty, dependency on technology and diminished supervisory judgement need to be evaluated.
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Image: EmanSuardi/stock.adobe.com 