The rise in money laundering monitoring requirements and surging acceptance of anti-money laundering (AML) solutions in both the private and public sectors are responsible for the growth of the global anti-money laundering market. Further, the increasing number of money laundering cases and other illegal activities, including skimming and sanction violation, and strengthening of the rules and regulations by governments are propelling the growth of the market. Because of these factors, the market generated $2.4 billion revenue in 2020, and it would show significant growth during the forecast period (2021–2030).
The impact of the COVID-19 pandemic on the global anti-money laundering market has been positive. Because of the lockdown across many countries, there has been a rapid increase in the usage of digital banking services, digital payments, and e-wallets. It is important to make these services and platforms secure, which is resulting in the increasing demand for AML solutions and software.
The global anti-money laundering market is classified into banks and other financial institutions, insurance providers, and gaming & gambling sector, on the basis of end-user. Among these, the banks and other financial institutions category held the largest share in 2020. This can be attributed to the increasing need for AML solutions among banks and other financial institutions because of the rising incidence of illegal activities, such as phishing, frauds, and money laundering.
Further, the market is bifurcated into cloud and on-premises, on the basis of deployment mode, of which the on-premises mode held the larger market share in 2020. It is also predicted to witness substantial growth during the forecast period owing to the higher preference for the deployment of such solutions on in-house systems rather than on the cloud. This is because on-premises deployment offers better control over the applications, systems, and platforms.
Geographically, the largest market for anti-money laundering solutions and services was North America in 2020. This can be ascribed to the presence of a large number of industry players, high adoption of advanced technologies, such as artificial intelligence (AI), increasing internet penetration, and rising number of money laundering cases.
Players in the global anti-money laundering market have been launching new products to enhance their global presence. For instance, in May 2019, Tata Consultancy Services Limited (TCS) launched TCS BaNCS, a banking software suite that supports real-time data processing, to help retail banks in Canada deal with issues related to payments.
Similarly, in September 2019, NICE Actimize, a subsidiary of NICE Systems Ltd., introduced SURVEIL-X, which is an AI-powered surveillance solution. It detects all types of risky behavior and helps financial service organizations quickly create and test risk detection models, to deal with the operational risk and meet regulatory compliance.
Some of the major players operating in the global anti-money laundering 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.