Fraud prevention and AML/CFT applications amongst most frequently used regtech solutions says EBA

Fraud prevention and anti-money laundering and countering the financing of terrorism (AML/CFT) are amongst the five most frequently used regtech solutions in the EU banking sector according to a new report published by the European Banking Authority (EBA).

Based on information obtained from surveys and interviews with financial institutions, regtech providers and competent authorities, the EBA analysis of RegTech in the EU financial sector assesses the overall benefits and challenges faced by financial institutions and regtech providers in the use of new technologies in regulatory environments.

Additional scope

Additionally, the report identifies potential risks arising from regtech solutions that supervisors will need to address and proposes actions designed to enhance knowledge and skills in competent authorities.

It also looks at the application of technology-enabled innovation for regulatory, compliance and reporting requirements and provides in depth analysis of the five most frequently used regtech segments: fraud prevention, AML/CFT, prudential reporting, ICT security and creditworthiness assessment.

Regtech benefits

Financial institutions highlight enhanced risk management, better monitoring and sampling capabilities as well as reduced human error as the main benefits of regtech solutions.

Regtech providers emphasise the ability to increase efficiency, quell the impact of ongoing regulatory change and improve effectiveness.


The report says evidence suggests that the majority of challenges to regtech market development are internal factors within financial institutions and regtech providers.

These relate to the quality, security and privacy of data; interoperability and integration with legacy systems; a lack of financial institutions’ application programming interface capabilities; costly and often lengthy and complex due diligence processes, and limited awareness of regtech solutions.

The EBA analysis of RegTech in the EU financial sector can be found here.


Categories: Trade Based Financial crimes News

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