Course on SupTech and RegTech

The Directorate of Financial Market Infrastructures of CEMLA, with the technical support of FNA, organized the Course on SupTech and RegTech. The meeting was held virtually from June 28 to 30, 2023. It was attended by 235 representatives of 40 institutions and associates of CEMLA, representing 37 countries. During the course some advances in the development of SupTech were presented, as well as some research on CBDCs.

During the first day of the course, the definitions of RegTech and SupTech were addressed, as well as the objectives they follow when developing these technologies. These seek to reduce both the workload of supervisors and the costs for companies and authorities. Innovations in data storage and management were presented, as well as projects related SupTech from the BIS. To close the first day, some applications of Large Language Models (LLMs) and Knowledge Graphs in data management that allow more intelligent monitoring were exposed.

On the second day of the course, Central Bank Digital Currencies (or CBDCs) were analyzed. Benefits, design requirements and current research on these were studied. Subsequently, the Atlas project that seeks to monitor the transactions of Decentralized Finance was presented. The day concluded with the presentation of a simulation of the implementation of a retail CBDC applying an agent-based model.

The third and final day of the course began with a review of applications of network analytics and machine learning to SWIFT transactions, supply chains and liquidity issues. Subsequently, the topic of cyberattacks and the resilience of systems was addressed, highlighting the human factor as one of the most vulnerable. Every day, the talks were complemented by practical exercises on using SupTech for the combination of monitoring data, network analysis to show some techniques applied to AML and CFT, and simulation of CBDCs.