Anti-money Laundering Market Outlook 2031:
The global anti-money laundering market size was valued at USD 1.04 Billion in 2022 and is projected to reach USD 3.49 Billion by 2031, expanding at a CAGR of 14.4% during the forecast period 2023 - 2031. The growth of the market is attributed to the increase in money laundering incidences across various industries globally.
Money laundering incidences across the globe are constantly increasing year by year due to wide access to several digital platforms for financial transactions. Companies are using anti-money laundering software’s to protect the customer data. Compliance experts are also using the software to coordinate with government regulations and corporate policies.
For instance, the US Government under its regulation called as Bank Secrecy Act provides several rules and legal measures to prevent money laundering associated crimes. The software uses data stored from multiple solutions are used to maintain financial transactions such as ERP systems and accounting software for decreasing money laundering activities.
Anti-money laundering solutions delivers quality performance in monitoring, visualizing, and resolving money laundering incidents. The advantages of anti-money laundering solutions enlists improved risk protection, robust data analysis, improved efficiency, and faster processing in resolving these cases.
The COVID-19 pandemic has positively influenced the market growth owing to increased online sales coordinated with the rising use of online payment solutions. The growing non-cash payments via prepaid cards, internet payments, and mobile payments have opened new gateways for money laundering.
The high speed at where transactions can be implemented with minimum interaction between the transaction initiator and the service provider, have intensified the vulnerability of these new payment methods to money laundering activities.
Anti-money Laundering Market Trends, Drivers, Restraints, and Opportunities
- Rising adoption of anti-money laundering technology by companies to ensure transparency of their financial transaction and using software to protect the customer data. This is expected to boost the market growth during the forecast period.
- Strict regulations imposed by various government organizations worldwide by aiming at abolished or combating money laundering incidents and counter terrorism funding. These factors are driving the market expansion.
- Wide implementation of advanced technology and software for banks and rapid establishment of effective process to screen against the foreign-related assets control sanctions. This is projected to fuel the market growth in the coming years.
- Increasing adoption of non-cash payments via prepaid cards, internet payments, have opened new gateways for money laundering in recent days. This is a key challenge that can hamper the market growth.
- Rising awareness in people regarding money laundering is expected to fuel the market growth.
Scope of Anti-money Laundering Market Report
The report on the global anti-money laundering market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Anti-money Laundering Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Components (Software and Services), Product Types (Compliance Management, Currency Transaction Reporting, Customer Identity Management, and Transaction Monitoring), Deployment (Cloud and On-premise), and End-users (BFSI, Government, Healthcare, IT & Telecom, and Others)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Tata Consultancy Services Limited; NICE Actimize; Cognizant Technology Solutions Corporation; Trulioo; SAS Institute Inc.; ACI Worldwide, Inc.; Oracle Corporation; Fiserv, Inc.; BAE Systems; and Accenture
Anti-money Laundering Market Segment Insights
Software segment is expected to grow at a rapid pace
Based on components, the global anti-money laundering market is bifurcated into software and services. The software segment is expected to grow at a rapid pace during the forecast period as the software plays a vital role in preventing and detecting financial crimes.
However, the services segment is anticipated to account for a large market share during the forecast period due to various benefits such as advice regarding a range of regulatory issues, risk rating methodology consulting, tuning, system optimizing, risk assessment, and training.
Transaction monitoring segment is anticipated to grow significantly
In terms of products types, the market is categorized into compliance management, currency transaction reporting, customer identity management, and transaction monitoring. The transaction monitoring segment is anticipated to grow significantly in the coming years due to benefits such as increased automation and increased effectiveness.
On the other hand, the customer identity management segment is projected to represent a large market share in the coming years owing to increased realization that the proper identification and verification of customer identity can help reduce the risk of money laundering.
On-premise segment is projected to expand at a considerable CAGR
On the basis of deployment, the global anti-money laundering market is bifurcated into cloud and on-premise. The on-premise segment is projected to expand at a considerable CAGR during the forecast period as the demand for advanced solutions is high among various organizations where user credentials are critical for business operations.
Meanwhile, the cloud segment is anticipated to account for a key market share during the forecast period as anti-money laundering solutions support organizations in decreasing the cost of establishing the required IT infrastructure.
BFSI segment is estimated to expand at a robust growth rate
In terms of end-users, the market is segregated into BFSI, government, healthcare, IT & telecom, and others. The BFSI segment is estimated to expand at a robust growth rate during the projected period owing to automation of financial systems and significant increase in online transactions.
Furthermore, the IT & telecom segment is anticipated to register a high growth rate in the coming years due to increased focus on anti-money laundering compliance by IT organizations.
North America is anticipated to constitute a key market share
In terms of regions, the global anti-money laundering market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of North America is anticipated to account for a key share of the market during the forecast period owing to presence of major market players in the region and the augmentation of inorganic strategies in the anti-money laundering vendors to execute artificial intelligence.
The market of Asia Pacific, however, is anticipated to expand at a rapid growth pace during the forecast period due to various government initiatives and steep increase in money laundering activities & financial frauds in the region.
The global anti-money laundering market has been segmented on the basis of
- Compliance Management
- Currency Transaction Reporting
- Customer Identity Management
- Transaction Monitoring
- IT & Telecom
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
Key players competing in the global anti-money laundering market are Tata Consultancy Services Limited; NICE Actimize; Cognizant Technology Solutions Corporation; Trulioo; SAS Institute Inc.; ACI Worldwide, Inc.; Oracle Corporation; Fiserv, Inc.; BAE Systems; and Accenture. The main market players are continuously engaged in business development activities such as mergers and acquisitions, research and developments, investments for innovative products, and collaborations. Tata Consultancy Services Ltd. introduced TCS BaNCS for Payments processing in Canada, which helped real-time payment processing in May 2019.