Published in August 2025, the EBA’s report titled “Report on the use of AML/CFT SupTech tools” highlights the transformative potential of SupTech tools, which leverage advanced technologies such as artificial intelligence (AI), natural language processing (NLP), blockchain analytics, and data automation to improve regulatory oversight.
The study is based on a detailed survey conducted in late 2024 and early 2025 involving 31 competent authorities from 25 EU member states and three non-EU jurisdictions. The analysis was supplemented by a January 2025 workshop gathering insights on SupTech applications, challenges, and best practices.
Promising Benefits of SupTech
According to the EBA, although SupTech adoption in AML/CFT supervision is still in early stages, the benefits reported by national competent authorities are substantial:
- Enhanced Data Quality: SupTech tools improve both quantitative and qualitative data by cleaning, standardizing, and validating datasets. This results in more reliable data for risk assessments and regulatory decisions.
- Improved Analytical Processes and Risk Identification: Automation and AI-assisted analysis enable faster, more accurate identification of emerging risks, ML/TF typologies, and system vulnerabilities. Tools such as clustering algorithms, semantic search, and blockchain transaction monitoring provide deeper insights into complex financial behaviors.
- Operational Efficiency: Automating routine tasks such as report compilation, data extraction, and cross-referencing between registers significantly optimizes supervisory resources, enabling staff to focus on in-depth investigations and strategic tasks.
- Stronger Collaboration: By improving interoperability and establishing uniform data formats, SupTech facilitates secure information sharing and coordinated cross-border supervisory actions. This addresses the challenge posed by sophisticated criminal networks exploiting jurisdictional gaps.
- Scalable Risk-Based Supervision: SupTech underpins a model that is increasingly data-driven, risk-sensitive, and scalable, aligned with the EU’s AML/CFT framework goals.
The report details examples of SupTech applications currently in use, such as integrated risk management tools, crypto transaction monitoring platforms, process mining for inspection planning, and automated fitness and propriety assessments.
SupTech Usage and Development Status
The survey of EU authorities reveals that 47% of identified SupTech tools are already in production, 38% are under development, and 15% remain in experimental phases, indicating growing momentum towards embedding technology in supervisory practices.
Despite this progress, authorities consider their preparedness for effective SupTech deployment as moderate due to several challenges:
- Data Quality and Governance: Persistent issues with data completeness and standards limit the efficiency of automated tools.
- Resource Constraints: Budgetary and staff limitations restrict the pace of SupTech implementation.
- Expertise Gaps: There is a need for specialized technical skills to manage, develop, and refine AI-driven tools.
- Legal and Organizational Barriers: Ambiguities in the legal framework concerning automated decision-making and resistance to digital transformation within organizations pose obstacles.
EBA’s Role and Future Outlook
The EBA asserts its commitment to supporting national competent authorities (NCAs) and AMLA by fostering technological innovation and facilitating the exchange of best practices across the EU. It highlights its legal mandate under Articles 29 and 31 of the EBA Founding Regulation to promote a consistent supervisory culture and embrace technological progress for enhanced regulatory effectiveness.
The ongoing work includes continuous evaluation and impact assessments during pilot phases to refine SupTech tools and embed them firmly in AML/CFT supervisory frameworks.
Importance for the Financial Sector and Public Safety
The integration of SupTech into AML/CFT supervision promises to reinforce financial system integrity and mitigate risks associated with illicit financial flows and terrorist financing. This will not only safeguard the EU’s financial markets but also protect the wider public from the social harms caused by financial crimes.
SupTech’s ability to process vast and complex data efficiently positions supervisory authorities to stay ahead of emerging threats, adapt to increasingly sophisticated laundering methods, and ensure compliance in an evolving regulatory environment.
The European Banking Authority’s comprehensive analysis and evidence from EU authorities confirm that SupTech is a crucial enabler of more effective, data-driven, and risk-based AML and CFT supervision. The adoption of these advanced technological tools is steadily advancing, despite existing challenges in data quality, resources, and legal clarity.
As the new EU AML/CFT framework matures with coordinated oversight through AMLA, SupTech will play a pivotal role in shaping more robust and scalable supervisory practices. The EBA’s ongoing support and facilitation of innovation aim to ensure that technology is harnessed fully to combat money laundering and terrorist financing with greater precision and impact.
AML Editor’s article was originally published in assetservicingtimes on 18 August 2025