The Bank of Italy published the results of a qualitative survey of a sample of medium-sized banks on their use of innovative tools to meet anti-money laundering and counter-terrorist financing (AML/CFT) requirements. The report sets out the potential benefits of these tools alongside the related risks, and identifies conditions and prerequisites needed for banks to fully realise the expected advantages. The survey focused on banks that, between 2022 and 2024, showed a strong aptitude for innovation and had already integrated innovative tools into their AML/CFT controls. The publication is intended to raise awareness among supervised banks of the need for a clear digital transformation strategy for AML/CFT, against a backdrop of high transaction volumes, increasing remote customer relationships, and criminal activity that is increasingly transnational and technologically sophisticated.