Global Anti-Money Laundering Market, By Offering (Solution, Services), Function (Compliance Management, Currency Transaction Reporting, Customer Identity Management, Transaction Monitoring), Deployment (Cloud, On-Premise), Enterprise Size (Large Enterprises, Small and Medium Enterprises), End Use (Banks and Financial Institutions, Insurance Providers, Gaming and Gambling, Government, Others) – Industry Trends and Forecast to 2030.
Anti-Money Laundering Market Analysis and Size
Criminals use money laundering to hide their crimes. Money laundering makes up 2% to 5% of the world's GDP. Hence, it can be difficult for companies to comply with money laundering. As a result, various companies use anti-money laundering services or software to detect suspicious customer data and transactions. Compliance professionals use the services or software to comply with corporate policies and government rules such as the Bank Secrecy Act of the U.S. intended to prevent the money laundering-related crimes.
Data Bridge Market Research analyses that the anti-money laundering market is expected to reach USD 4.10 billion by 2030, which is USD 1.36 billion in 2022, at a CAGR of 14.80% during the forecast period. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
Anti-Money Laundering Market Scope and Segmentation
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Report Metric
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Details
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Forecast Period
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2023 to 2030
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Base Year
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2022
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Historic Years
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2021 (Customizable to 2015 - 2020)
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Quantitative Units
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Revenue in USD Billion, Volumes in Units, Pricing in USD
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Segments Covered
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Offering (Solution, Services), Function (Compliance Management, Currency Transaction Reporting, Customer Identity Management, Transaction Monitoring), Deployment (Cloud, On-Premise), Enterprise Size (Large Enterprises, Small and Medium Enterprises), End Use (Banks and Financial Institutions, Insurance Providers, Gaming and Gambling, Government, Others)
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Countries Covered
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U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America
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Market Players Covered
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Microsoft (U.S.), IBM (U.S.), SAP (Germany), SAS Institute Inc. (U.S.), Accenture (Ireland), Tata Consultancy Services Limited (India), Open Text Corporation (Canada), BAE Systems (U.S.), Intel Corporation (U.S.), Oracle (U.S ), Fiserv, Inc. (U.S.), Cognizant (U.S.), ACI Worldwide (U.S.), Experian Information Solutions, Inc. (U.S.), NICE (U.S.), SEON Technologies Ltd (U.K.), WorkFusion, Inc.(U.S.), Acuant, Inc. (U.S.), Caseware International Inc. (Canada), Sanction Scanner (U.K.)
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Market Opportunities
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Market Definition
Anti-money laundering refers to the web of regulations, procedures and laws which aimed at uncovering efforts to disguise illegal funds as legitimate income. Money laundering try to find to hide crimes ranging from small-time tax evasion and the financing of groups designated as terrorist organizations. Various solutions provided by an anti-money laundering solution are know-your-customer system, transaction monitoring, auditing and reporting, compliance management, and financial fraud detection and protection, amongst many others.
Global Anti-Money Laundering Market
Drivers
- Increasing usage of anti-money laundering banks and other financial sectors
The banks and other financial sectors hold the major share of the overall market during the forecast period. This can be attributed to the growing adoption of banking and financial services globally, such as pension funds, commercial banking and retail banking, and developments in the digital banking technology. As a result of growth in the usage of banking and financial services, the incidence of money laundering and fraud has increased, which is expected to drive the growth of the market.
- Rising threat of money laundering by digital payments
The surging usage of virtual currencies and growing penetration of the internet are some of the major factors resulting in the growing number of money laundering cases globally. Moreover, the increase in the usage of online banking services such as digital payments, has increased the chances of money laundering. As a result of all these factors, the need for anti-money laundering software and associated services increases which is expected to further enhance the market growth.
Opportunities
- Rising product launches for fraud and identity services
The surging product launches and other innovations by major market players for fraud and identity services offer numerous growth opportunities within the market. For instance, Oracle Corporation introduced anti-money laundering services for banks in 2020. Oracle financial crime and compliance Management Cloud Services is designed for smaller financial institutions and mid-sized banks. It provides services for the full AML lifecycle, so organizations can easily identify customer behavior and fulfil compliance requirements.
- Stringent government rules regarding money laundering
Several banks, such as Danske Bank A/S, are reporting money laundering cases, which is resulting in heavy fines on them globally. The growing usage of digital transfer of funds using unidentified payment services, online banking services, and increasing traffic over the internet are responsible for the surge in the cases of money laundering all over the globe. As a result, governments have imposed their anti-money laundering for instance, the Reserve Bank of India has toughened its digital payment security norms in 2021 to improve security and ensure compliance by financial institutions. As a result of this, the demand for anti-money laundering solution increases which will create lucrative opportunities for the market growth.
.Restraints
- High cost associated with deployment of anti-money laundering solutions
Anti-money laundering helps to detect unusual financial activities and required laws are implemented to combat illegal transactions. Anti-money laundering processes Know Your Customer, include currency transaction reporting, and transaction monitoring. Furthermore, even with anti-money laundering solutions, it can often be tough to detect fraud in some situations. In these cases, financial institutions consolidate KYC data using numerous technology and methods to surge data quality. Moreover, financial institutions hire outside firms to observe customer data more thoroughly, which charges considerably more than the fees charged by regulators. These factors are anticipated to obstruct the market growth during the forecast period.
- Change in guidelines and regulation framework for anti-money laundering (AML) solution
Anti-money laundering (AML) compliance practices focus on setting the norms and policies that prevent potential violators from engaging in financial crime and money laundering fraud. In this way, criminals cannot hide money's illegal source in any transaction. Thus, change in guidelines and regulation framework for anti-money laundering (AML) solution will hamper the market growth.
This anti-money laundering market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the anti-money laundering market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
COVID-19 pandemic on Anti-Money Laundering Market
The COVID-19 pandemic has positively impacted the growth of the anti-money laundering market owing to a sudden increase in online sales along with growing use of online payment solutions. The growth in non-cash payments through prepaid cards, internet payments and mobile payments has created new opportunities for money laundering in current days. The high speed at which transactions can be executed along with minimal face-to-face interaction between the person and the service provider, has augmented the importance of new payment methods to money laundering activities. This generates the requirement for financial services institutions to stringently monitor all their transactions to avoid the penalties framed by regulatory bodies and lessen money laundering activities.
Recent Development
- In 2022, Oracle announced the launch of cloud-based platform named "Arachnys". This would be available to strengthen and integrate with “Compliance Management" solution suite and Oracle's Financial Services Financial Crime. With this launch, Oracle will provide its customers additional capabilities to increase the diligence process, including cloud-based content library completely tailored for KYC profile record completion.
- In 2022, Fiserv, Inc. announced their partnership with Equifax to improve digital commerce with information or data. With this partnership, companies enhance the digital economy. The companies will be able to target new customers and increase their solution portfolio.
Global Anti-Money Laundering Market Scope
The anti-money laundering market is segmented on the basis of offering, function, deployment, enterprise size and end use. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Offering
- Solution
- Services
Function
- Compliance Management
- Currency Transaction Reporting
- Customer Identity Management
- Transaction Monitoring
Deployment
- Cloud
- On-Premise
Enterprise Size
- Large Enterprises
- Small and Medium Enterprises
End Use
- Banks and Financial Institutions
- Insurance Providers
- Gaming and Gambling
- Government
- Others
Anti-Money Laundering Market Regional Analysis/Insights
The anti-money laundering market is analyzed and market size insights and trends are provided by country, offering, function, deployment, enterprise size and end use as referenced above.
The countries covered in the anti-money laundering market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
Europe dominates the anti-money laundering market owing to the continuous improvements in regulatory norms in this region. The major users of this region include the US government and the US armed forces. The trade-based money laundering rules implemented in Europe include the Payment Card Industry Data Security Standard, General Data Protection Regulation and AMLD5 the 5th Money Laundering Directive.
North America will continue to project the highest compound annual growth rate during the forecast period of 2023-2030 owing to the presence of major key players in the region. The presence of a large number of banks is also anticipated to increase the adoption of anti-money laundering solutions in this region.
The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Anti-Money Laundering Market Share Analysis
The anti-money laundering market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to anti-money laundering market.
Some of the major players operating in the anti-money laundering market are:
- Microsoft (U.S.)
- IBM (U.S.)
- SAP (Germany)
- SAS Institute Inc. (U.S.)
- Accenture (Ireland)
- Tata Consultancy Services Limited (India)
- Open Text Corporation (Canada)
- BAE Systems (U.S.)
- Intel Corporation (U.S.)
- Oracle (U.S)
- Fiserv, Inc. (U.S.)
- Cognizant (U.S.)
- ACI Worldwide (U.S.)
- Experian Information Solutions, Inc. (U.S.)
- NICE (U.S.)
- SEON Technologies Ltd (U.K.)
- WorkFusion, Inc.(U.S.)
- Acuant, Inc. (U.S.)
- Caseware International Inc. (Canada)
- Sanction Scanner (U.K.)
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