The anti-money laundering market size is projected to be valued at USD 3.18 billion in 2023 and is expected to rise to USD 16.37 billion by 2033. The sales of anti-money laundering (AML) are projected to expand at a significant CAGR of 17.8% during the forecast period.
One of the main factors influencing the adoption of anti-money laundering solutions across organizations is the rise in money laundering cases around the world. For instance, the United Nations Office on Drugs and Crime (UNODC) estimates that between 2 to 5 % of the world's gross domestic product (GDP) has been laundered globally.
Anti-money laundering strategies are actively being used by financial institutions and governments worldwide to combat financial crimes.
Market acceptance has been aided by the development of powerful anti-money laundering software that can precisely trace suspicious transactions and identify any possible crimes.
In addition, technological developments made by numerous international Fin-tech firms to improve financial security and monitoring have increased product demand in recent years.
The use of electronic wallets, or eWallets, is growing, and this change has increased the chance of illegal financial activities. Banks have been warned by the FATF about unauthorized financial transactions.
Solutions for AML transaction monitoring have features for customer profiling, sanctions screening, and blacklist screening. To counteract these trends, banks have made significant investments in personnel, manual checks, and point-in-time system development.
The most difficult part of creating an effective AML program is the timely detection of the laundering operations since money launderers keep coming up with new ways to use banks for illegal purposes. Many businesses are introducing cutting-edge technologies that can identify, monitor, and stop money laundering.
On the other side, artificial intelligence (AI) can assist businesses in resolving a range of problems brought on by the growth in digitalization.
In situations involving anti-money laundering, it can lessen the need for human intervention. Even though AI can never fully replace people, it can greatly minimize the need for human authorization.
| Attribute | Details |
|---|---|
| Anti-money Laundering (AML) Market Estimated Size (2023) | USD 3.18 billion |
| Anti-money Laundering (AML) Market CAGR (2023 to 2033) | 17.8% |
| Anti-money Laundering (AML) Market Forecasted Size (2033) | USD 16.37 billion |
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The growing use of big data analytics by businesses enables them to conduct analyses that can identify trends and draw important conclusions from big data sets. It is predicted that using big data analytics may increase demand for anti-money laundering software.
For instance, Coinfirm and Sanction Scanner collaborated in November 2022 to offer compliance expertise and benefits in the blockchain with traditional finance ecosystems. Through this agreement, clients are likely to be able to track and inspect transactions handled by their businesses for both fiat currency and cryptocurrency.
Big Data analytics is the best tool for AML compliance because it can be tailored to enhance and automate numerous AML compliance processes. Big Data analytics also aids in risk reduction, fraud pattern detection, and the detection of data quality concerns that result in false positives.
Financial organizations can study the details of existing regulatory laws with the help of big data analytics tools. It aids in the analysis of client onboarding, transactional data, and the completion of regulatory authority obligations. Real-time risk or problem detection also aids in avoiding potential rule violations in front of supervisory authorities.
Demand for anti-money laundering (AML) is anticipated to rise at a phenomenal CAGR of 17.8% from 2023 to 2033.
Growing Emphasis on Real-time Monitoring and Regulatory Technology is Providing the Market with Lucrative Prospects
To obtain a comprehensive overview of a customer's activities in real-time, real-time transaction monitoring examines client transactions and behavior by looking at both past and present customer data and interactions. Organizations can identify financial crimes early on or before they happen, thanks to the transaction monitoring feature of anti-money laundering software.
Financial institutions can identify possible instances of financial crime and take action to intervene and stop it from happening at that same moment by implementing real-time transaction monitoring in anti-money laundering.
RegTech (Regulatory Technology) provides banks and other financial institutions with access to sophisticated tools and procedures that automate data gathering, processing, and visualization. RegTech helps banks onboard consumers quickly, efficiently, and with less engagement from the customer.
In the upcoming years, there is likely to be a boom in demand for anti-money laundering software due to the advent of AI RegTech solutions in the financial sector.
Principal Consultant
Several financial institutions frequently utilize AML solutions. There are a few external forces that have an impact on financial services. In order to identify the most significant issues relating to client identity or transactions, the solutions mix AI, machine learning, and big data.
This enables authorities to take the necessary action. Several sizable corporations provide banking institutions with AML solutions. Through the analysis of process modifications and the identification of any enhancements that may be required, these solutions are made to solve transaction monitoring, compliance management, and other issues to maintain smooth financial operations.
During the forecast period, these variables are expected to assist the segment's revenue growth.
BFSI companies are among the most frequent users of AML solutions, which use affordable ML and AI methods to combat illegal activity. The risk of fraudulent financial operations has increased as a result of digitalization, automation, and online transactions. In 2020, there were 1.9 billion users of internet banking services globally.
Additionally, it is anticipated that during the projection period, demand for AML solutions and services is estimated to increase due to the growing requirement to detect and prevent illegal activities. Additionally, throughout the forecast period, revenue growth in the market is anticipated to be fueled by increased governance and internal control to comply with domestic and international statutory AML rules.
As a result of numerous institutions in the region, anti-money laundering solutions are also anticipated to see considerable adoption in the future years. Additionally, it is projected that inorganic tactics to incorporate artificial intelligence among anti-money laundering providers may evolve, which is likely to accelerate the growth of the anti-money laundering sector in the area.
Specific anti-money laundering regulations set by the United States Congress under the Anti-Money Laundering Act of 2020 stimulate national preference for anti-money laundering, which is anticipated to boost regional market growth.
As a result of numerous institutions in the region, anti-money laundering solutions are also anticipated to see considerable adoption in the future years. Additionally, it is projected that inorganic tactics to incorporate artificial intelligence among anti-money laundering providers may evolve, which is likely to accelerate the growth of the anti-money laundering sector in the area.
Specific anti-money laundering regulations set by the United States Congress under the Anti-money Laundering Act of 2020 stimulate national preference for anti-money laundering, which is anticipated to boost the regional market growth.
Asia Pacific market's prominent revenue growth rate is linked to the region's expanding adoption of digital payment platforms in nations like China and India. The industry is anticipated to grow in revenue as a result of increased government support and regulations, such as those set forth by the intergovernmental Financial Action Task Force (FATF) to tighten anti-money laundering procedures.
For instance, the Prevention of Money Laundering Act, 2002 (PMLA) in India forbids money laundering and is anticipated to spur development in market income in the near future.
To accelerate market growth, businesses in the region are significantly incorporating technologies like AI, ML, and automation in their AML solutions. For instance, in March 2020, 3i Infotech Limited unveiled AMLOCK Analytics, a cutting-edge AML system outfitted with machine language and artificial intelligence (AI) (ML).
AMLOCK Analytics creates analyses and forecasts based on institution-specific historical data using a variety of statistical techniques and machine learning algorithms.
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Due to the presence of numerous solution providers worldwide, including SAS Institute, NICE Ltd., Experian, BAE Systems, FICO, Refinitiv, and many others, the anti-money laundering (AML) market's competitive environment is moderately fragmented.
Additionally, several small and medium-sized businesses are entering the market and generating money, which is anticipated to support them in developing novel solutions. To increase their market position, the current market participants are also developing strategic alliances and collaborations.
| Attribute | Details |
|---|---|
| Growth Rate | CAGR of 17.8% from 2023 to 2033 |
| Base Year of Estimation | 2022 |
| Historical Data | 2017 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD billion and Volume in Units and F-CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, growth factors, Trends, and Pricing Analysis |
| Key Segments Covered | Component, Deployment Model, Organization Size, Application, Region |
| Regions Covered | North America; Latin America; Europe; East Asia; South Asia; The Middle East & Africa; Oceania |
| Key Countries Profiled | Unite States, Canada, Brazil, Mexico, Germany, Italy, France, United Kingdom, Spain, Russia, China, Japan, India, GCC Countries, Australia |
| Key Companies Profiled | Oracle (The United States); ACI Worldwide (The United States); Eastnets (The United States); AML Partners. (The United States); Alessa (The United States); Acuant, Inc. (The United States); Feedzai (Portugal); SAS Institute Inc. (The United States); Ondato (The United Kingdom); Sanction Scanner (The United Kingdom) |
| Customization & Pricing | Available upon Request |
Adoption of anti-money laundering solutions across organizations drives sales.
Europe is anticipated to be the market with the highest potential.
The market is forecast to register a CAGR of 17.8% through 2033.
The market generated a revenue of USD 3.18 billion in 2023.
Growing emphasis on real-time monitoring provides a key opportunity.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component 5.1. Solutions 5.1.1. KYC/CDD & Sanction Screening 5.1.2. Transaction Monitoring 5.1.3. Case Management & Reporting 5.2. Services 5.2.1. Professional Services 5.2.2. Managed Services 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Organization Size 6.1. Small & Medium Enterprises 6.2. Large Enterprises 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Deployment Mode 7.1. Cloud 7.2. On-Premise 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use 8.1. Banks & Financial Institutions 8.2. Insurance Providers 8.3. Gaming & Gambling 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. South Asia 9.5. East Asia 9.6. Oceania 9.7. MEA 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. ACI Worldwide Inc. 19.2. BAE Systems plc 19.3. Nice Systems Ltd. 19.4. Fair Isaac Corporation (FICO) 19.5. SAS Institute Inc. 19.6. Fiserv Inc. 19.7. Dixtior 19.8. LexisNexis Risk Solutions 19.9. TransUnion LLC 19.10. Wolter’s Kluwer Limited 19.11. Temenos AG 19.12. Nelito Systems Ltd. 19.13. Tata Consultancy Services Ltd. 19.14. Featurespace Limited 19.15. Feedzai Inc. 19.16. Finacus Solutions Private Limited 19.17. CaseWare RCM 19.18. Comarch SA 20. Assumptions & Acronyms Used 21. Research Methodology
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Anti-money Laundering Market
