Global Anti-Money Laundering Solutions Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global Anti-Money Laundering Solutions Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Anti-money Laundering market is expected to register a CAGR of 16.11% during the forecast period.

Key Highlights

• The increasing cases of money laundering worldwide are among the primary factors driving the adoption of anti-money laundering solutions across enterprises. For instance, according to the United Nations Office on Drugs and Crime (UNODC) forecast, the amount of money that has been laundered globally amounts to approximately 2-5% of the global GDP.
• In 2020, banks paid approximately USD 15.13 billion in AML fines globally. Additionally, the banks in the U.S. accounted for the highest fines from twelve violations in 2020, amounting to USD 11.11 billion.
• Also, the study by Basel Institute on Governance reports the risk index of money laundering and terrorist financing in Benelux countries, that includes Luxembourg, Belgium, and the Netherlands) from 2016 to 2020. In 2020, Luxembourg was ranked the highest risk country in the Benelux region and 92nd on the global list of 125 countries. The Netherlands and Belgium were ranked 101st and 118th, respectively.
• COVID-19 has positively impacted market growth due to a rapid rise in online sales and the increasing use of online payment solutions. A rise in non-cash payments through mobile payments, internet payments, and prepaid cards is increasing the chances of illegal money transactions in recent times. The high-speed execution of transactions coupled with minimal direct interaction between the person initiating the transaction and the service provider has amplified the vulnerability of these new payment methods to money laundering activities.

Key Market TrendsTransaction Monitoring Solution is Expected to Grow Significantly

• A well-formulated transaction monitoring system is crucial for an effective anti-money laundering (AML) ecosystem. It is more profound in the post-pandemic world, where most transactions are now being performed over digital platforms.
• Transaction monitoring software alerts when a situation violates the rules and is against the customer profile during customer transactions. Once the software generates an alarm, the transaction monitoring process conducted by AML is automatically stopped. The cycle continues to be executed and reviewed by the Firm's Compliance or Risk Department.
• In the current pandemic scenario, financial institutions face an even larger challenge in AML and terrorist financing. Public firms are taking preventive measures to combat jobless people involved in money mule scams.
• In 2020, Europol, in cooperation with the law enforcement authorities of 26 countries, launched an operation against money mule schemes worldwide. Between September and November 2020, the European Money Mule Action (EMMA) resulted in the identification of 4,031 money mules, 227 money mule recruiters, and the arrest of 422 individuals worldwide. This further suggests the increasing need for transaction monitoring systems.
• The government has also penalized several financial institutions for incompetent transaction monitoring systems. For instance, in December 2021, Financial Conduct Authority announced it had fined HSBC USD 85.16 million for failing to comply with its anti-money laundering processes. The FCA found that over ten years, three key parts of HSBC's transaction monitoring system showed serious weakness.

Asia Pacific Expected to Exhibit Maximum Growth

• The Asia Pacific region is expected to exhibit maximum growth in the Anti-Money Laundering Solutions Market during the forecast period due to the several innovations done by the regional players coupled with initiatives taken by the regional government to heighten the security of the financial landscape of the countries in the region.
• Companies in the region are increasingly integrating technologies, such as AI, ML, and automation, in their AML solutions to boost the market growth. For instance, in March 2020, 3i Infotech Limited launched an advanced AML solution, AMLOCK Analytics, equipped with Artificial Intelligence (AI) and Machine Language (ML). AMLOCK Analytics uses various statistical methods and machine learning algorithms to derive analyses and predictions based on institution-specific historical data.
• Also, several regional banks and financial institutions are collaborating with global AML solution providers to deploy their solutions, which will help them maintain compliance. For instance, in December 2020, a Taiwan-based company, Chailease, collaborated with NICE Actimize to deploy its anti-money laundering compliance platform.
• The solution will enable Chailease to utilize advanced analytics and machine-learning technologies and increase efficiency in maintaining regulatory compliance. Such initiatives and collaborations are expected to boost the growth of the AML market in the region.

Competitive Landscape

The competitive landscape of the Anti-Money Laundering (AML) Solution Market is moderately fragmented owing to the presence of several solution providers globally, such as SAS Institute, NICE Ltd., Experian, BAE Systems, FICO, Refinitiv, and many more. Also, several small and medium-sized companies are emerging in the market and raising funds, which is expected to help them create innovative solutions. Also, the existing market players are forming strategic partnerships and collaborations to boost their market presence.

• September 2021 - FICO partnered with international consulting and IT company MSG group. This partnership supports and resells FICO’s financial crime compliance and fraud products throughout Europe, the Middle East & Africa. MSG will offer consulting services to businesses using FICO Siron Anti-Financial Crime Solutions on financial crime compliance.
• February 2021 - Experian launched a new version of its fraud prevention platform, targeted at businesses that experienced high demand for digital services or were dealing with a bump in the number of online accounts.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.