What Has Been the Growth Trajectory of the Anti-Money Laundering Software Market?
The anti-money laundering software market has seen considerable growth due to a variety of factors.
• In recent times, the market size of the anti-money laundering software has seen a substantial rise. Its growth is projected to increase from $2.85 billion in 2024 to $3.22 billion by the year 2025, with a compound annual growth rate (CAGR) that stands at 13.2%. This growth during the historic period can be attributed to factors such as an increase in financial transactions, stringent adherence to regulatory compliance, the global expansion of banking services, a surge in financial crimes, demand for risk management, and concerns related to cybersecurity.
How Does the Forecast Look for the Anti-Money Laundering Software Market?
The Anti-Money Laundering Software market is expected to maintain its strong growth trajectory in upcoming years.
• The market for anti-money laundering software is poised for an accelerated expansion in the coming years, with projections indicating a growth to $5.9 billion by 2029, driven by a compound annual growth rate (CAGR) of 16.3%.
This surge during the forecasted period is primarily ascribed to an emphasis on customer due diligence, improvements in sanctions screening, the rise of cryptocurrencies, risks associated with mobile payments, and real-time transaction monitoring. Furthermore, key trends expected to shape the market within the forecasted period include escalating regulatory rigor, the incorporation of artificial intelligence and machine learning, a focus on surveillance and transaction monitoring, automation in due diligence procedures, an increase in cloud-based AML solutions, and improved risk-based methodologies.
What Are The Leading Drivers Of Growth In The Anti-Money Laundering Software Market?
The surge in incidents related to money laundering is anticipated to boost the anti-money laundering software industry. Money laundering typically involves transforming unlawfully obtained capital into lawful funds. The significant growth in money laundering incidents has facilitated the widespread use of anti-money laundering software programs to meet the regulatory demands of organizations seeking to detect and thwart financial crimes. For instance, a March 2023 report by the Enforcement Directorate (ED) in India highlighted that the instances of money laundering registered in the fiscal year 2022-23 had escalated to 579, a marked increase from prior years. In addition to this, the ED reported a collective 3,497 incidents of money laundering over the past five years, reflecting an escalation in enforcement efforts against financial offenses. Consequently, the escalating number of deceptive activities and money laundering episodes will bolster the expansion of the anti-money laundering software sector.
How Are The Segments Defined Within The Global Anti-Money Laundering Software Market?
The anti-money laundering software market covered in this report is segmented –
1) By Component: Software, Services
2) By Deployment: On-Premise, On-cloud
3) By Application: Transaction Monitoring, Currency Transaction Reporting, Customer Identity Management, Compliance Management, Other Applications
4) By End-Use: BFSI, Defense, Healthcare, IT And Telecom, Retail, Other End-users
Subsegments:
1) By Software: Transaction Monitoring Software, Customer Due Diligence Software, Risk Assessment Software, Reporting And Analytics Software
2) By Services: Consulting Services, Implementation Services, Support And Maintenance Services, Training Services
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How Are New Trends Expected To Influence The Growth Of The Anti-Money Laundering Software Market?
Key operators in the anti-money laundering software industry are striving to maintain their edge through the creation of new AI-powered solutions. Take for instance, Google LLC, an American technology firm that introduced its Anti Money Laundering AI (AML AI) in June 2023. This AI-driven product aims to aid international financial bodies in properly identifying money laundering activities. By leveraging machine learning, the product generates a risk score for each customer, which is determined by transactional tendencies, networking habits, and Know Your Customer (KYC) information. As an alternative to the traditional rules-based transaction alerting, this approach minimizes false positives while enhancing operational efficiency and overall program effectiveness.
Who Are the Key Players In The Anti-Money Laundering Software Market?
Major companies operating in the anti-money laundering software market include:
• Accenture Inc.
• ACI Worldwide Inc.
• AML Partners LLC
• Ascent Business Technology Inc.
• BAE Systems Inc.
• Eastnets Holding Limited
• Verafin Inc.
• Fidelity National Information Services Inc.
• Fiserv Inc.
• Oracle Corporation
• SAS Institute Inc.
• Sungard Availability Services
• Experian Information Solutions Inc.
• Fico
• NICE Systems Ltd.
• Accuity Inc.
• SmartSearch
• SynerScope B.V.
• Truth Technologies Inc.
• Exiger LLC
• Global RADAR
• The International Business Machines Corporation
• GB Group PLC
• MSA Focus Inc.
• KPMG International Limited
• RELX PLC
• Temenos AG
• Quantexa
• London Stock Exchange Group PLC
• KYC Global Technologies Limited
What Is The Most Dominant Region In The Anti-Money Laundering Software Market?
North America was the largest region in the anti-money laundering software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the anti-money laundering software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
