SupTech Identified as Key Driver for More Effective AML/CFT Supervision, Says EBA

The European Banking Authority (EBA) has published a new report highlighting the transformative role of supervisory technology (SupTech) in strengthening anti-money laundering and countering the financing of terrorism (AML/CFT) oversight across the European Union.

The study, based on a survey of national competent authorities (NCAs) and a workshop co-organised with the European Commission’s AMLA Task Force, reveals that almost half (47%) of SupTech tools identified are already operational, with a further 38% in development and 15% in exploratory stages. Early benefits include improved data quality, faster risk identification, and enhanced supervisory collaboration.

The findings come as the EU prepares to implement its new AML/CFT framework, a landmark legislative package that includes the creation of the Anti-Money Laundering and Countering the Financing of Terrorism Authority (AMLA). This central body will coordinate supervision at EU level, presenting a pivotal opportunity to embed a more risk-based, data-driven, and scalable supervisory model.

The report identifies a range of effective practices for integrating SupTech into AML/CFT oversight, from robust change management processes to stronger data governance and alignment of supervisory strategies with technological innovation. It also notes persistent challenges, including resource constraints, legal uncertainty, and limitations in data sharing frameworks.

Under Articles 29 and 31 of its Founding Regulation, the EBA has a clear mandate to foster a common supervisory culture, promote convergence, and facilitate the safe adoption of innovative tools. In line with this, the EBA confirmed it will continue supporting both NCAs and AMLA in expanding SupTech use, aiming to enhance consistency, scalability, and efficiency in tackling financial crime across the EU.

This latest assessment positions SupTech as an essential enabler for the next generation of AML/CFT supervision, ensuring that European authorities can keep pace with increasingly sophisticated money laundering and terrorist financing threats while leveraging technology to boost regulatory effectiveness.

Read the report here.