Global Anti-Money Laundering (AML) Market Report 2023-2028: Opportunities in the Integration of Ai, Ml, and Big Data Technologies in Developing AML Solutions

DUBLIN, Jan. 4, 2024 /PRNewswire/ — The “Global Anti-Money Laundering (AML) Market by Offering (Solutions (KYC/CDD & Sanctions Screening, Transaction Monitoring, Case Management & Reporting), Services), Deployment Mode, Organization Size, End-user (Banks & Financial Institutes, Insurance) and Region – Forecast to 2028” report has been added to ResearchAndMarkets.com’s offering.

The global AML market is projected to grow from USD 3.1 billion in 2023 to USD 6.8 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 17%

Over the years, AML solutions and services have experienced significant growth and evolution driven by the increasing complexity of financial crimes and technological advancements.

AML solutions have transitioned from manual and rule-based systems to sophisticated and dynamic platforms that harness the power of AI and ML algorithms. In the early stages, AML efforts primarily relied on rule-based systems that flagged transactions based on predetermined thresholds and patterns. However, these systems often generated high volumes of false positives, overwhelming compliance teams and leading to inefficient use of resources.

North America is estimated to be the largest contributor in terms of the market size in the AML market. It is one of the most affected regions in the world by money laundering and terrorist financing crime activities; as a result, it has the highest number of AML solution providers. Money laundering is a significant issue in the United States. Due to its immense size and economic diversity, the region is an appealing target for money launderers looking to take advantage of vulnerabilities in various businesses and sectors.

The sophisticated financial system in North America, along with the anonymity provided by digital transactions and intricate corporate networks, creates an ideal environment for blending criminal funds with the legal economy. Major AML solution vendors such as SAS Institute, FICO, FIS, ACI Worldwide, and Oracle are headquartered in North America.

Major vendors in the global AML market include LexisNexis (US), Oracle (US), FIS (US), Fiserv (US), Jumio (US), NICE Actimize (US), SAS Institute (US), GB Group (UK), FICO (US), ACI Worldwide (US), Experian (Ireland). The study includes an in-depth competitive analysis of the key players in the AML market, their company profiles, recent developments, and key market strategies.

By end-user, banks and financial institutes segment holds the largest market size

Within banking and financial institutions, a diverse range of sectors is incorporated, spanning retail banking, digital banking, commercial banking, investments involving hedge funds and pension funds, wealth management, virtual currencies and exchanges, cross-border payment systems, and money services businesses.

Predominantly, banks stand as the principal and most significant consumers of Anti-Money Laundering (AML) solutions worldwide, holding a pivotal role as key customers for prominent global players. Moreover, the increasing number of millions of fines received by banks is expected to increase the adoption of advanced AML solutions. AML integrated with AI or ML would help banks improve the security measures required to track money laundering activities.

By deployment mode, the on-premises segment holds the largest market size

In Anti-Money Laundering (AML) deployment, the on-premises mode refers to the setup and utilization of AML solutions within an organization’s physical infrastructure. In contrast to cloud-based deployment, which involves hosting applications on remote servers accessed via the Internet, on-premises deployment entails operating AML software and systems on the organization’s internal hardware within its premises. The strategy is favored by larger enterprises and institutions seeking elevated control over their data, security measures, and customization options.

Through on-premises AML deployment, organizations maintain direct oversight of their data, safeguarding sensitive information within their internal network. It becomes especially relevant in industries or sectors subject to rigorous data privacy regulations or security considerations. On-premises solutions facilitate highly tailored configurations to match specific security requirements and compliance mandates.

Nevertheless, the approach entails higher initial expenditures due to necessities like dedicated hardware, software licenses, and skilled IT personnel for maintenance and updates. Despite these factors, on-premises AML deployment offers a sense of ownership and command that holds significance for organizations emphasizing data security and customization within their AML strategies.

Premium Insights

Increased Monetary Penalties and Regulatory Sanctions Expected to Drive Growth of MarketSolutions Segment to Grow at Higher CAGR During Forecast PeriodTransaction Monitoring Segment to Grow at Highest CAGR During Forecast PeriodOn-Premises Segment to Account for Largest Share in 2023Large Enterprises to Account for Larger Share in 2023Banking & Financial Institutes and North America Region to Account for Largest Shares in 2023Asia-Pacific to Emerge as Best Market for Investments in Next Five Years

Use Cases

Fico Helped 4Finance Increase Efficiency while Maintaining Regulatory ComplianceNice Actimize Helped European Bank Improve Insight into Global OperationsSas Institute Helped Bangkok Bank Stay Ahead of Emerging Risks and Changing Regulations

Market Dynamics

Drivers

Increased Monetary Penalties, Regulatory Sanctions, and Reputational Loss Due to Noncompliance with RegulationsRise in Focus Toward Digital Payments and Internet BankingNecessity to Create Infrastructure with 360-Degree View of Data in Financial Landscape

Restraints

Increased Technological Complexities and Sophistication of AttacksBudgetary Issues in Developing In-House Fraud Detection Solutions

Opportunities

Higher Adoption of Advanced Analytics in AMLIntegration of Ai, Ml, and Big Data Technologies in Developing AML SolutionsAdoption of Cloud-Based AML Solutions to Combat Financial CrimesIncreased Use of AML in Real Estate Sector

Challenges

Lack of Skilled AML Professionals with In-Depth KnowledgeLack of Awareness Related to Government Regulations and Deployment of AML Solutions

Technological Analysis

Anti-Money Laundering and Ai/MlAnti-Money Laundering and Data AnalyticsAnti-Money Laundering and Internet of ThingsAnti-Money Laundering and Real-Time Authentication

Regulatory Landscape

Financial Industry Regulatory AuthorityFinancial Action Task Force (Fatf)International Monetary FundGeneral Data Protection RegulationGramm – Leach – Bliley ActSarbanes – Oxley Act

Company Profiles

Key Players

LexisnexisOracleFisFiservJumioNice ActimizeSas InstituteGb Group plcFicoAci WorldwideExperianNelito SystemsWolters KluwerComarchAllsec TechnologiesDixtiorTemenosTcsComplyadvantageFeaturespaceFeedzaiNapierTier1 Financial SolutionsFinacus SolutionsFrissTransunion

Other Players

SymphonyaiIdmeritImtfInnovative SystemsSediciiTruliooNamescanDatavisorGurucul

For more information about this report visit https://www.researchandmarkets.com/r/6u5hxd

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