Anti-Money Laundering Market

Report Scope & Overview:

The Anti-Money Laundering Market size was valued at USD 3.07 Bn in 2022 and is expected to reach USD 9.28 Bn by 2030, and grow at a CAGR of 14.8% over the forecast period 2023-2030.

Anti-Money Laundering (AML) solutions include a variety of policies, rules, and regulations that aid in the prevention of financial crimes. These guidelines, regulations, and laws, among others, are established by global and local authorities present all over the world in order to increase the operation of AML solutions. Anti-Money Laundering (AML) solutions are used to detect and warn institutions about money laundering, terrorist financing, fraud, electronic crime, bribery and corruption, tax evasion, embezzlement, information security, and illegal cross-border transactions, among other things that have a significant impact on the economy and reputation of the country. AML is a phrase that is commonly used to describe the battle against money laundering and financial crimes.

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In terms of escalating financial crime concerns and the expanding breadth of regulatory requirements, 2021 was a hard year for the financial industry. As a result, regulatory agencies focused on Anti-Money Laundering (AML) compliance and how to tighten it up to provide improved monitoring, detection, prevention, and eradication of money laundering and terrorism funding offences. This compliance trend looks to be continuing in 2022, with more strict regulation changes to include as many new businesses as possible that may be vulnerable to financial crimes, such as the cryptocurrency industry. Over the anticipated time, the four key AML developments described below are expected to be hot topics.

1. The need for crypto currency regulation

2. New technologies (AI and ML) enable better data optimization

3. APIs for improved TMS (Transaction Monitoring and Screening)

4. The FATF is pushing top financial institutions to share data in order to combat AML/CFT.

MARKET DYNAMICS:

KEY DRIVERS:

• Noncompliance with severe AML laws results in monetary fines, regulatory consequences, and reputational damage.

• Financial institutions focus on digital payments issues.

• To combat financial crimes that threaten the financial landscape, a comprehensive perspective of data is required.

RESTRAINTS:

• The increased sophistication of AML systems restricts the capacity to detect fraudulent actions early.

OPPORTUNITY:

• Adoption of sophisticated analytics in AML is increasing.

• Integration of AI, machine learning, and big data technologies in the development of AML solutions

CHALLENGES:

• a scarcity of experienced AML personnel with extensive expertise

• Higher expenses associated with AML solution deployment

IMPACT OF COVID-19:

COVID-19 has accelerated the advancement of digital technology. Because of political restrictions across the world, everyone is increasingly reliant on digital platforms to meet their everyday needs. The primary use is digital payments. The use of digital wallets, often known as eWallets, has grown. As a result of this transition, the likelihood of unlawful money transactions has grown. The FATF has issued a warning to banks regarding unlawful money transfers. As a result, the need for AML solutions has grown, and this factor has a significant influence on market growth. The growing volume of data on networks as a result of the increased use of digital platforms puts a strain on the infrastructure security of banks and financial institutions. Despite several safeguards, banks are being attacked by hackers, resulting in massive losses. As a result, demand for improved AML solutions is growing, influencing the market growth. Cybercrime, such as financial fraud, is on the rise as data on networks grows. Banks and financial institutions are increasingly using data analytics technologies to improve their security procedures. This is predicted to have a significant influence on market growth.

MARKET ESTIMATION:

In 2021, the software category led the market. Anti-money laundering software assists organizations in ensuring that government-mandated legal criteria are satisfied. The services sector is expected to increase the most throughout the predicted period. Anti-money laundering services include risk rating methodology consultation, regulatory assistance, system optimization, and tuning, risk assessment, and training. Employees are trained to comprehend the different anti-money laundering rules that apply to diverse sectors.

In 2021, the transaction monitoring sector dominated the market. Financial institutions can execute consumer transactions in real-time thanks to anti-money transaction monitoring software. Transaction monitoring software solutions also offer advantages such as enhanced automation, ease of detecting suspicious conduct, and increased efficacy, all of which fuel demand for the category. Over the projected period, the customer identity management category is predicted to increase the most. Customer identity management systems keep banks from being used for money laundering by criminals. These technologies also assist financial organizations in better understanding their customers' financial dealings in order to minimize risk and service them better.

In 2021, the transaction monitoring sector dominated the market. Financial institutions can execute consumer transactions in real-time thanks to anti-money transaction monitoring software. Transaction monitoring software solutions also offer advantages such as enhanced automation, ease of detecting suspicious conduct, and increased efficacy, all of which fuel demand for the category. Over the projected period, the customer identity management category is predicted to increase the most. Customer identity management systems keep banks from being used for money laundering by criminals. These technologies also assist financial organizations in better understanding their customers' financial dealings in order to minimize risk and service them better.

In 2021, the BFSI category dominated the market. Retail banking, commercial banking, digital banking, and wealth management institutes are all part of the BFSI category. Banks are confronting an ever-increasing danger of fraud and financial crimes as a result of financial system digitalization and automation, as well as considerable growth in online transactions. Over the projection period, the IT and telecom category is expected to increase significantly. IT firms' growing attention to anti-money laundering compliance is projected to boost market development. To decrease fraudulent transactions, IT organizations throughout the world are using risk management strategies.

KEY MARKET SEGMENTS:

On The Basis of Component:

• Software

• Services

On The Basis of Deployment:

• Cloud

• On-premise

On The Basis of Product:

• Compliance Management

• Currency Transaction Reporting

• Customer Identity Management

• Transaction Monitoring

On The Basis of End-use:

• BFSI

• Government

• Healthcare

• IT & Telecom

• Others

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REGIONAL ANALYSIS:

Because it is a technologically sophisticated area with a large number of early adopters and the presence of key market players, Throughout the forecast period, North America is expected to generate the highest revenue share. Factors such as the proliferation of inorganic growth methods among key AML vendors, advances in the deployment of AI, ML in AML solutions, and rising demand for cloud-based AML solutions are projected to fuel the need for anti-money laundering solutions. Europe is predicted to contribute to the fastest-growing region with the highest CAGR throughout the projection period due to technical advancements and early acceptance of new technologies.

REGIONAL COVERAGE:

• North America

  • USA

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

  • Italy

  • Spain

  • The Netherlands

  • Rest of Europe

• Asia-Pacific

  • Japan

  • south Korea

  • China

  • India

  • Australia

  • Rest of Asia-Pacific

• The Middle East & Africa

  • Israel

  • UAE

  • South Africa

  • Rest of Middle East & Africa

• Latin America

  • Brazil

  • Argentina

  • Rest of Latin America

KEY PLAYERS:

The major key players are ACI Worldwide Inc., BAE Systems plc, Nice Systems Ltd., Fair Isaac Corporation (FICO), SAS Institute Inc., Fiserv Inc., Dixtior, LexisNexis Risk Solutions, TransUnion LLC, Wolter’s Kluwer Limited & Other Players

ACI Worldwide Inc - Company Financial Analysis