Anti-Money Laundering Market Research Report: By Type (Solutions, Services), Deployment Mode (Cloud, On-Premise), Organization Size (Large Enterprises, SMEs), End User (Banks and Other Financial Institutions, Insurance Providers, Gaming & Gambling Sector) - Global Industry Analysis and Growth Forecast to 2030

Market Overview

The global anti-money laundering market generated ~$3 billion revenue in 2020, and it is predicted to show a substantial growth rate during the forecast period (2021–2030). The key factors behind the growth of the market are the rise in the number of money laundering cases and increase in the requirement for monitoring money laundering activities. Further, the growth in information technology (IT) spending is boosting the demand for AML solutions.

The COVID-19 pandemic has positively affected the global anti-money laundering market, as due to the implementation of lockdown in many countries, the volume of digital payments and use of digital wallets has increased, with people shifting to digital platforms. Thus, the demand for AML solutions is increasing.

Banks and Other Financial Institutions Hold Largest Share

The banks and other financial institutions category held the largest share in the market in 2020, on the basis of end-user. This can be credited to the increasing adoption of banking and financial services worldwide, such as commercial banking, pension funds, and retail banking, and advancements in the digital banking technology. Due to a rise in the usage of banking and financial services, the incidence of fraud and money laundering has increased, which is driving the growth of the global anti-money laundering market.

On-Premises Category To Grow during Forecast Period

The on-premises category, on the basis of deployment mode, held the larger share in the global anti-money laundering market in 2020. It would, additionally, show significant growth in the upcoming years owing to the many benefits provided by solutions deployed on the premises, such as full control over the applications, data, platforms, and systems.

North America Is Largest Market for Anti-Money Laundering Solutions

In 2020, North America held the largest share in the anti-money laundering industry. This can be attributed to the high internet penetration in the U.S. and Canada, which increases the demand for AML solutions and services, and the deployment of advanced technologies in AML solutions, such as artificial intelligence (AI) and machine learning (ML).

Financial Institutions’ Focus on Problems Related to Digital Payments Boosting Market Value

Due to the increase in the volume of digital payments worldwide, rising traffic on the internet, and technological advancements, illegal activities, such as money laundering and frauds, have also increased. Thus, with the increase in the number of digital payments, it is rather important to make the platforms secure. These factors have resulted in an increase in the demand for AML solutions and services, thus helping the market grow.

Increase in Number of Money Laundering Cases Driving Market

The increasing penetration of the internet and surging usage of virtual currencies are some of the major factors resulting in the increasing number of money laundering cases worldwide. Further, the rise in the usage of online banking services, including digital payments, has made the situation worse, thereby driving the need for AML software and associated services.

Stringent Government Regulations Regarding Money Laundering To Boost Advance of Market

Globally, many banks, such as Danske Bank A/S, are reporting cases of money laundering, which is resulting in heavy fines on them. The increasing usage of online banking services, digital transfer of funds using unidentified payment services, and rising traffic over the internet are responsible for the increase in the number of money laundering cases across the globe. As a result, governments have made their AML laws and those centered on digital payments more stringent. For instance, in February 2021, the Reserve Bank of India (RBI) toughened its digital payment security norms in order to improve security and control and ensure compliance by financial institutions. Developments like these are resulting in the increasing demand for AML solutions, thus boosting the market revenue.

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Market Players Launching New AML Solutions to Help Users Check Fraud

In recent years, players in the global anti-money laundering market have launched new products in order to gain a significant position. Major organizations in the market are ACI Worldwide Inc., BAE Systems plc, Nice Systems Ltd., Fair Isaac Corporation (FICO), SAS Institute Inc., LexisNexis Risk Solutions, Fiserv Inc., Dixtior, TransUnion LLC, Wolter’s Kluwer Limited, Temenos AG, Nelito Systems Ltd., Tata Consultancy Services Ltd. (TCS), Featurespace Limited, Feedzai Inc., Finacus Solutions Private Limited, CaseWare RCM, and Comarch SA.

In November 2020, Oracle Corporation introduced anti-money laundering services for banks. Oracle Financial Crime and Compliance Management Cloud Services is an application suite designed for mid-sized banks and smaller financial institutions. It offers services for the full AML lifecycle, so organizations can quickly identify abnormal customer behavior and meet compliance requirements.

In August 2020, Comarch SA introduced a fraud detection system for corporate and small and medium enterprise (SME) banking. The system can automatically flag suspicious transactions, thus reducing the effort in transaction screening. The system can be extended with AI algorithms to create models that can determine the occurrence of certain events with high accuracy, based on historical data.

Key Players in Global Anti-Money Laundering Market Include:

Market Size Breakdown by Segments

The global anti-money laundering market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.

Based on Type

• Solutions
  • Know your customer (KYC)/customer due diligence (CDD)
  • Transaction screening and monitoring
  • Case management
  • Regulatory reporting
• Services
  • Professional  
  • Managed

Based on Deployment Mode

• Cloud
• On-Premise

Based on Organization Size

• Large Enterprises
• SMEs

Based on End User

• Banks and Other Financial Institutions
• Insurance Providers 
• Gaming & Gambling Sector

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific (APAC)
  • Japan
  • China
  • India
  • Australia
  • South Korea
• Latin America (LATAM)
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa