Global Anti-Money Laundering Market By Component (Software, Services), By Product Type (Compliance Management, Currency Transaction Reporting, Customer Identity Management, and Transaction Monitoring), By Deployment (Cloud and On-premise), By End-Use (BFSI, Government, Healthcare, IT & Telecom, and Other End-Uses), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2022-2032

Anti-Money Laundering Market Overview:

In 2021, the global anti-money laundering market was worth USD 1,189.57 million with a CAGR of 15.25%.

Anti-Money laundering software is used by companies to identify customer information and suspicious transactions. The software is also used by compliance professionals to ensure compliance with corporate regulations and policies, like the Bank Secrecy Act of the United States. This law prevents money laundering-related crimes. Anti-Money laundering software makes use of data from multiple solutions that manage economic transactions. This includes ERP systems and accounting software to reduce money laundering.

Global Anti-Money Laundering Market Scope:

Component Analysis

In 2021, the software market dominated and accounted for more than 63% of global revenue. Software that helps prevent money laundering is essential for organizations to ensure compliance with all legal requirements set forth by governments. The software is also vital in the prevention and detection of financial crimes. This software can also speed up customer onboarding.

This segment is expected to experience the greatest growth during the forecast period. These services such as consulting on risk rating methodology, advice about a variety of regulatory issues, and system tuning and tuning. Employees are provided training to help them comprehend the different anti-money laundering laws that apply to various industries.

Product Type Analysis

In 2021, the transaction monitoring segment was dominant. Financial institutions can conduct customer transactions in real-time with anti-money transaction monitoring software. The segment is also gaining popularity because of its benefits, such as greater automation, easier identification of suspicious behavior, and increased effectiveness. There are many products on the market that offer features like blacklist screening, customer profiling, and sanctions screening.

Over the forecast period, the segment of customer identity management is expected to experience the greatest growth. Customers can use customer identity management to prevent money laundering by criminal elements. These solutions allow financial institutions to better understand the financial transactions of their customers and help them manage risk more effectively. This segment will be in high demand due to the realization that proper identification and verification can reduce the risk of money laundering.

Deployment Analysis

In 2021, the on-premise market held significant global revenue. On-premise deployments of anti-money laundering products give organizations complete control over their applications, platforms, and data. This can be easily managed by the company’s IT staff. The demand for this segment is also high in companies where user credentials are essential for business operations. To protect themselves from malicious threats, the organizations employ on-premise anti-money laundering.

The cloud segment is expected to experience the greatest growth during the forecast period. Organizations can reduce the cost of setting up the necessary IT infrastructure by using cloud-based anti-money laundering solutions. Cloud-based deployment has other advantages, such as flexibility and an improvement in security, which will drive cloud adoption in the near future. Multi-factor authentication for access to stored data gives cloud computing extra security against the risk of being laundered.

End-Use Analysis

In 2021, the BFSI segment was the dominant market and accounted for high global revenue. BFSI includes commercial banking, retail banking, digital banking, and wealth management institutions, among other things. The increasing threat of fraud and financial crime facing banks is due to the digitization and automation in financial systems as well as an increase in online transactions. Banks must comply with anti-money laundering regulations to detect and prevent financial crimes. This creates a demand for anti-money laundering solutions in the BFSI segment.

Over the forecast period, significant growth is expected in the IT and telecom segments. Market growth will be driven by the increased attention IT organizations place on anti-money laundering compliance. Companies around the globe are using risk management strategies to reduce fraudulent transactions. Companies can provide enhanced and secure services to clients by reducing fraudulent transactions.

Key Market Segments:

By Component

• Software
• Services

By Product Type

• Compliance Management
• Currency Transaction Reporting
• Customer Identity Management
• Transaction Monitoring

By Deployment

• Cloud
• On-premise

By End-Use

• BFSI
• Government
• Healthcare
• IT & Telecom
• Other End-Uses

Market Dynamics:

These solutions provide extensive performance in monitoring, solving money laundering, and analyzing cases. These solutions offer many benefits, such as robust data analysis, faster processing, better risk protection, and higher productivity in resolving these instances.

Many governments around the globe have passed laws and regulations to fight money laundering and counterterrorism funding. Inter-governmental body the Financial Action Task Force helps countries to update and create laws to fight money laundering. Financial institutions must ensure compliance with country-specific anti-money laundering policies. These policies allow financial institutions to create a set of processes that will preclude illicit funds from arriving in their financial systems.

Certain rules are required of financial institutions to ensure money laundering prevention. The Bank Secrecy Act of the United States needs banks to create a compliance program and establish client diligence systems. Banks are required to have Monitoring Process and a suspicious Activity Reporting to Screen against Foreign Assets Control Sanctions Office.

Market growth has been positively affected by the pandemic COVID 19. This is due to an increase in online deals and increased usage of online payments. In recent times, new avenues have been created for money laundering by the increase in using cash transactions via internet payments, mobile payments, and prepaid cards. These relatively new payment methods have increased their vulnerability to money laundering due to the speed with which transactions can be completed and the minimal interaction between the individual initiating the transaction as well as the service provider.

Financial services organizations must monitor all transactions in order to avoid money laundering and avoid penalties from regulatory authorities. Tookitaki Holding Pte. provided the following statistics. Global banks paid USD 6,200 million in penalties for anti-money laundering in 2019 to Ltd., a software firm. These penalties were mostly imposed by regulators from countries like India, France, and Belgium.

Regional Analysis:

In 2021, the North American region market was dominant in anti-money laundering and accounted for over 46% of global revenue. Major market players in the region are responsible for the growth. In the near future, the adoption of anti-money laundering solutions in the region will be driven by the presence of large banks. Market growth will also be driven by the proliferation of organic strategies among anti-money laundering vendors that implement artificial Intelligence.

Over the forecast period, Europe will be the fastest-growing regional market. Market growth will be driven by continuous improvements in the regulatory norms governing Europe’s BFSA sector. A sharp increase in money laundering and financial fraud is driving the demand for anti-money laundering solutions within the region.

Key Regions and Countries covered in the report:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share & Key Players Analysis:

The market’s competitive landscape is fragmented. To strengthen their market position, market players focus on strategies like partnerships, joint ventures, and product innovation. Due to security benefits, businesses are now focusing on offering on-premise software solutions for enterprises. Enterprises can increase their security and customer satisfaction by using on-premise anti-laundering software.
To stay competitive, market players focus on improving their product offerings in order to meet the evolving needs of customers. NICE Actimize, for example, launched IFMX in January 2019. This integrated fraud management platform uses machine learning and automation technologies. It optimizes proficiency and reduces the overall cost of setting up and maintaining a risk management system. TCS BaNCS is a payment solution that supports real-time processing. Tata Consultancy Services Limited introduced it in Canada in May 2019. This new solution will encourage banks and financial institutions to adopt Payments Canada’s modernization initiatives faster.

Market Key Players:

• NICE Actimize
• Tata Consultancy Services Limited
• BAE Systems
• Cognizant Technology Solutions Corporation
• ACI Worldwide Inc.
• SAS Institute Inc.
• Fiserv Inc.
• Oracle Corporation
• Other Key Players

For the Anti-money Laundering Software Market research study, the following years have been considered to estimate the market size: