Regulatory Technology (RegTech) is a specialized subset of FinTech that focuses on improving how organizations meet regulatory and compliance obligations, including AML/CFT requirements. RegTech solutions leverage technologies such as automation, data analytics, artificial intelligence, and machine learning to enhance efficiency, accuracy, and scalability.
In the AML context, RegTech supports functions such as customer due diligence (CDD), transaction monitoring, sanctions screening, regulatory reporting, and record-keeping. These tools help financial institutions reduce manual processes, improve detection of suspicious activity, and respond more quickly to regulatory changes.
SupTech, by contrast, refers to supervisory technology used by regulators, not regulated institutions. The other options are not recognized regulatory terms.
Global regulators, including FATF and national supervisory authorities, actively encourage the responsible adoption of RegTech as part of a risk-based approach, provided appropriate governance, data quality, and model oversight are in place.
