Hi SupTech Community,
Welcome to the 46th issue of the Cambridge SupTech Lab bi-weekly LinkedIn newsletter, a source for updates on recent innovations, breakthroughs, opportunities, upcoming events in the suptech field, and news from the Cambridge SupTech Lab team.
If you would like to flag any items for inclusion in the next newsletter, please email us at cambridgesuptechlab@jbs.cam.ac.uk. Occasionally, we email our global community of supervisors, data scientists, vendors, and suptech experts to share event invites, news, or new courses—subscribe here.
This edition includes news from the Bank for International Settlements, Central Bank of Brazil, Financial Action Task Force, Financial Conduct Authority, Financial Services Commission, FINOS, Hong Kong Monetary Authority, Reserve Bank of Australia, Toronto Centre, United States Commodity Futures Trading Commission, United States Department of the Treasury, and others.
Suptech Innovations
Commodity Futures Trading Commission replaces 1990s-era system with Nasdaq’s advanced market surveillance technology. The United States CFTC has deployed Nasdaq’s market surveillance platform to replace its decades-old legacy system, providing automated alerts and cross-market analytics for the first time. The upgrade enables the CFTC to monitor traditional derivatives markets alongside emerging digital asset classes through integrated surveillance capabilities used by over 50 exchanges globally. Acting Chairman Caroline Pham described the modernisation as essential for making the CFTC a “21st century regulator” capable of detecting fraud, manipulation, and unusual trading activity across an expanding range of markets including cryptocurrency assets and event-based derivatives. Read more here.
Reserve Bank of Australia (RBA) deploys an artificial intelligence (AI) tool to enhance business liaison intelligence. Researchers at the RBA have developed an AI-powered text analytics and retrieval tool that processes quarter-century of central bank business liaison meeting notes using natural language processing techniques to provide real-time economic insights. The system enables analysts to query historical conversations with firms, measure topic frequency and sentiment, and extract precise numerical data such as wage and price growth figures reported by businesses. Testing shows that incorporating these text-based indicators into nowcasting models significantly improves wage growth predictions, with the sparse signal structure indicating that a small number of targeted features can enhance traditional economic forecasting methods. Read more here.
Indonesia’s Financial Authority (OJK) launches digital databases to enhance insurance industry oversight. The OJK has launched agent and policy databases integrated with its SPRINT licensing platform, providing QR code verification for agents and monthly policy data reported through the APOLO reporting system. The platforms create a “single source of truth” for registered agent credentials and comprehensive insurance policy information across all business lines, supporting risk-based supervision and industry transparency to strengthen consumer protection. Read more here.
Central Banking & Technology
Central Bank of Brazil (BCB) transforms credit registry with AI-powered data quality system. The BCB demonstrates how machine learning (ML) can revolutionise public credit registry operations by implementing automated outlier detection models to enhance data accuracy from financial institutions. The deployment of AI tools like iForest has enabled more efficient and scalable identification of data quality issues, showcasing how public sector institutions can match private sector innovation capabilities. The case study emphasises the importance of responsible AI implementation with model interpretability and continuous refinement, serving as a compelling example for other central banks worldwide to embrace technology as essential infrastructure rather than optional enhancement. Read more here.
South Korea’s Financial Supervisory Service (FSS) to build surveillance system for Nextrade. FSS Korea is developing a direct monitoring system for NextTrade, Korea’s first alternative trading system (ATS), amid rising volumes and unfair trading concerns. Unlike the monopolistic Korea Exchange, Nextrade lacks its own market surveillance capabilities but offers 12-hour trading sessions that have attracted individual investors. The FSS system will detect market manipulation and abnormal transactions across both platforms, addressing concerns that the expanded trading environment could enable more sophisticated financial crimes in a multi-market structure. Read more here.
Wolfsberg Group publishes its second statement on effective monitoring for suspicious activity. Within this new statement, the Group establishes three core pillars for responsible innovation: transition and validation, balancing model risk with financial crime risk, and explainability to ensure transparency. The framework emerges from member banks’ experiences implementing AI and ML technologies, supplemented by workshops with financial intelligence units and supervisory authorities worldwide. Wolfsberg is calling on financial institutions to move from legacy transaction screening to AI-enabled models with tailored governance. Read more here.
Only 1.1 per cent of laundered money recovered as authorities fight crime in isolation. A Financial Times’ Banking Risk and Regulation article reveals that financial authorities operating independently in anti-money laundering (AML) efforts are missing critical opportunities, with global recovery rates at just 1.1 per cent of laundered funds. The article highlights ten ways the European Banking Authority suggests supervisors can leverage suptech to combat criminals more effectively, warning that fragmented approaches risk undermining detection and prevention capabilities against illicit financial flows. Read more here.
Work on central bank digital currencies (CBDCs) advance as tokenisation transforms financial landscape. The Bank for International Settlements’ survey shows 91 per cent of 93 central banks are exploring digital currencies, driven by declining cash usage and rising asset tokenisation across bond markets and commercial bank deposits. CBDC development has progressed alongside emerging stablecoin regulation, with wholesale versions advancing more rapidly than retail alternatives. Central banks seek to preserve monetary sovereignty in an increasingly tokenised financial ecosystem, though design approaches vary significantly across jurisdictions based on local constraints and preferences. Read more here.
The US Treasury seeks industry input on innovative tools to combat digital asset crime. The US Department of the Treasury has issued a public consultation under the GENIUS Act, seeking feedback on innovative methods for detecting illicit activity involving digital assets. The request specifically focuses on AI, application programming interfaces, blockchain monitoring, and digital identity verification tools that financial institutions use or could deploy to combat financial crime. Responses are due by 17th October, with the Treasury required to assess the effectiveness, costs, and cybersecurity risks of these technologies as part of the comprehensive regulatory framework for stablecoin issuers established under the legislation. Read more here.
Toronto Centre develops framework to address geopolitical risks in financial supervision. Financial supervisors face mounting challenges from complex, country-specific geopolitical risks that impact their regulatory objectives through varied channels. The Toronto Centre’s new assessment framework provides supervisory authorities with structured tools to identify relevant geopolitical events, evaluate their potential effects on supervisory goals, and develop proactive responses. The guidance, accompanied by a podcast, outlines systematic approaches for conducting impact assessments and crafting effective supervisory strategies in an increasingly turbulent geopolitical environment. Read more here.
Financial Action Task Force (FATF) launches national risk assessment toolkit to combat money laundering. The toolkit targets four priority areas – corruption, virtual assets, legal persons and arrangements, and the informal economy – providing cross-country risk insights and practical examples to help governments strengthen their risk-based approach. Covering trillions of dollars in annual criminal proceeds, the framework encourages countries to combine global trend awareness with national context to build more comprehensive anti-money laundering strategies and ensure proportionate responses that prevent illicit activity from moving into unmonitored channels. Read more here.
Financial Conduct Authority (FCA) outlines role of new open banking standards body. The “Future Entity” will serve as the primary standards organisation for United Kingdom (UK) open banking, monitoring technology quality and consistency to support regulatory supervision. The body is expected to facilitate variable recurring payments for household bills later this year and provide standards for commercial open banking schemes to promote sector innovation. The FCA emphasises that continued industry engagement remains vital as it works with stakeholders to establish this organisation and create a more competitive payments sector that embraces technological change. Read more here.
Hong Kong implements comprehensive stablecoin licensing regime from 1 August. The Hong Kong Monetary Authority (HKMA) finalised guidelines for stablecoin issuer supervision and anti-money laundering compliance as the territory’s new regulatory framework came into effect. Market participants interested in licensing must contact the HKMA by 31 August, with early applications encouraged by 30 September, though the authority warns that no licences have yet been issued. The HKMA has cautioned the public against unlicensed operators falsely claiming regulatory status, emphasising that individuals holding unlicensed stablecoins do so at their own risk. Read more here.
Events
Central Banking to host inter-bank strategy session to navigate market uncertainty. The virtual working group session on 17 September will focus on developing strategic plans and handling uncertainty amid challenging market conditions. The discussion will address current strategic priorities and risk management approaches as financial institutions navigate an increasingly volatile economic environment. Applicants can register their interest in participating in the collaborative working groups designed to share best practices and coordinate responses to emerging challenges here.
FINOS seeks to develop trustworthy AI standards through London workshop and techsprint. FINOS will establish standards for trustworthy generative AI in financial services through two London events on 19-20 September. The member-only workshop on 19th September will define project scope for the “AI Evaluation and Benchmarking Suite”, followed by a techsprint bringing together AI and finance experts to produce working code and prototype integrations with leading evaluation tools, supporting financial institutions’ transition from AI proof-of-concept to production-ready solutions under evolving regulatory frameworks. Read more and register for the techsprint here.
Toronto Centre to offer green and sustainable finance training from 22-26 September 2025. This virtual programme cultivates in-depth knowledge about supervisory roles in developing sustainable financial markets and instruments through comprehensive coverage of taxonomies, frameworks, and green bonds. The course addresses critical areas including greenwashing prevention, blended finance mechanisms, and capital mobilisation for transition projects. Designed for middle and senior-level supervisors across banking, securities, insurance and pensions sectors, the programme forms part of the new Climate Risk Certification but remains open to broader participation from central bankers and other financial stability officials. Read more here.
Digital Financial Services Supervision (DFS) programme to take place from 8-12 September 2025. The Toronto Centre’s virtual programme empowers supervisors to understand digital financial services and their implications for financial stability and market conduct through group activities and case studies. Participants learn to assess risks in DFS products and processes, formulate appropriate supervisory strategies, and understand regulatory mandates for emerging technologies. Open to mid-to-senior level supervisors with at least three years of experience, the programme serves as a Level 2 elective for the Certified Financial Supervisor designation and covers topics including risk assessments, on-site and off-site supervision, data collection, and agent network oversight. Read more and register here.
Experts explore financial innovation’s role in sustainable development at a virtual conference. The executive panel at the 4th International Conference on Financing for Development examined how supervisory frameworks must adapt to technological advances including fintech and AI innovation to accelerate the Sustainable Development Agenda. Key discussions highlighted cyber resilience and combating financial crime as prerequisites for stable digital financial systems, drawing lessons from Kenya’s mobile money adoption. Panellists emphasised the critical importance of collaboration between consumers, industry, and regulators to strengthen the financial sector’s role in supporting climate goals and building supervisory capacity for emerging technologies. Read more here.
Toronto Centre and CGAP explore FATF’s new financial inclusion guidance. The first in Toronto Centre’s two-part podcast series, produced in partnership with CGAP, examines FATF’s June 2025 guidance on balancing AML measures with financial access. The discussion focuses on proportionality principles that support financial inclusion, the complementary relationship between financial integrity and inclusion objectives, and insights from the international consultation process involving standard-setting bodies. FATF’s guidance acknowledges that overly cautious AML/CFT approaches can inadvertently exclude legitimate businesses and consumers from financial services. Read more here.
