The European Banking Authority (EBA) has published a Report on the use of technology tools in anti-money laundering and countering the financing of terrorism (AML/CFT) supervision (SupTech). The Report takes stock of ongoing innovation efforts by competent authorities in the EU and explores how these can support the effective implementation of the new EU AML/CFT framework.
The new AML/CFT framework represents a significant step forward in the EU’s fight against financial crime. A key element o is the creation of the Anti-Money Laundering and Countering the Financing of Terrorism Authority (AMLA), which will coordinate AML/CFT supervision at EU level. This institutional change provides a unique opportunity to reassess supervisory approaches and harness the potential of technology to enhance oversight. To inform this work, the EBA conducted a survey of national competent authorities (NCAs) and, together with the European Commission’s AMLA Task Force, organised a dedicated workshop to identify trends, challenges, and good practices in the use of SupTech in AML/CFT supervision.
Today’s Report summarises the key insights from these two initiatives. It provides an overview of current SupTech use across the EU and outlines examples of effective practices in, for instance, change management, data and technology, supervisory and regulatory strategies, that can contribute to a more risk-based, data-driven, and scalable supervisory model under the new AML/CFT framework.
While SupTech deployments in the AML/CFT area are still evolving, nearly half of the tools or projects identified (47%) are already in production, with a further 38% under development and 15% in exploratory phases. The Report finds that NCAs are already experiencing tangible benefits, including improved data quality, enhanced collaboration, and more efficient risk identification. However, several challenges remain, such as limited resources, legal uncertainty, and data governance constraints.
The EBA will continue to support NCAs and AMLA in strengthening their use of technology and fostering innovation in AML/CFT supervision across the EU.
Legal basis
Article 29 of the EBA Founding Regulation mandates the Authority to play an active role in building a common Union supervisory culture and consistent supervisory practices. In addition, Article 31 mandates the EBA to promote supervisory convergence and facilitate entry into the market of actors or products relying on technological innovation, in particular through the exchange of information and best practices. The aim of this mandate is to contribute to the establishment of a common European approach towards technological innovation.
Documents
Source: EBA
