The European Banking Authority (EBA) has published a new report on the use of technology tools in anti-money laundering and countering the financing of terrorism (AML/CFT) supervision, also known as supervisory technology, or SupTech.

SupTech refers to the application of advanced technological solutions by supervisory authorities to enhance their ability to monitor, analyse, and oversee financial institutions.

In the context of AML/CFT, SupTech can include tools that help detect suspicious financial activity more effectively, improve the quality of data reporting, and support risk-based supervision.

The report takes stock of innovation efforts already underway across the European Union and examines how they can support the implementation of the new EU AML/CFT framework.

A central feature of this framework is the creation of the Anti-Money Laundering and Countering the Financing of Terrorism Authority (AMLA), which will oversee and coordinate AML/CFT supervision at the European level.

According to the EBA, this new authority presents a unique opportunity to reassess supervisory approaches and to harness the potential of technology to improve oversight.

To inform the report, the EBA surveyed national competent authorities (NCAs) and, together with the European Commission’s AMLA Task Force, organised a dedicated workshop to identify trends, challenges, and best practices in the use of SupTech for AML/CFT supervision.

The report provides a detailed overview of how SupTech is currently being used across the EU.

It outlines effective practices in areas such as change management, data and technology, supervisory and regulatory strategies, which can help develop a more risk-based, data-driven, and scalable supervisory model under the new AML/CFT framework.

While SupTech applications in AML/CFT remain in an early phase of development, the report highlights that nearly half of the tools or projects identified, amounting to 47 per cent, are already in production.

A further 38 per cent are still under development, while 15 per cent are at an exploratory stage.

The EBA found that NCAs are already experiencing concrete benefits from the deployment of SupTech.

These include improved data quality, better collaboration among supervisory bodies, and more efficient identification of risks in financial systems.

However, several challenges remain. Authorities face constraints linked to limited resources, legal uncertainty, and data governance, which continue to hinder broader adoption of technology in supervision.

The EBA confirmed that it will continue to support both NCAs and the AMLA in strengthening their use of technology and fostering innovation in AML/CFT supervision throughout the EU.

The report also reflects the EBA’s legal responsibilities under its Founding Regulation.

Article 29 requires the authority to play an active role in building a common Union supervisory culture and in ensuring consistent supervisory practices.

In addition, Article 31 mandates the EBA to promote supervisory convergence and facilitate the entry into the market of actors or products that rely on technological innovation, particularly through the exchange of information and best practices.

Finally, the EBA stressed that the purpose of this mandate is to contribute to the establishment of a common European approach to technological innovation in financial supervision.