Anti-Money Laundering Solutions Market Size

Anti-Money Laundering Solutions Market Analysis

The Anti-Money Laundering Solutions Market size is estimated at USD 2.98 billion in 2024, and is expected to reach USD 6.01 billion by 2029, growing at a CAGR of 15.06% during the forecast period (2024-2029).

• Anti-money laundering (AML) refers to a set of laws and, regulations, procedures designed to stop criminals from making income through illegal actions. AML solutions encompass software and services that are created to help organizations such as financial institutions, money-service businesses, and insurance companies comply with AML regulations.
• Apart from the moral imperative to fight money laundering and terrorist financing, the financial institutions also use AML tactics to comply with regulations that require them to monitor customers and transactions continually and report suspicious activity to avoid consent orders along with civil and criminal penalties that could be levied due to non-compliance or negligence, and for reduction of fines, IT and employee costs, and capital reserved for risk exposure.
• Money laundering and terrorist financing, fraud, cyber-attacks, bribery, and corruption all increased due to the COVID-19 pandemic. Since many organizations, particularly those in the BFSI sector were transforming to a more digital future, the risk of financial cybercrime was significant. The risk is worsened because most people's lack of familiarity with internet platforms. These factors generate an atmosphere suitable for cybercriminals to exploit, and they already had a devastating impact on the financial industry.
• The increasing amount of data on networks due to the high usage of digital platforms has increased the load on the infrastructure security of banks and financial institutes. Banks are being attacked by hackers despite taking several precautions, resulting in huge losses. Hence, the demand for anti-money laundering solutions is increasing, impacting the market's growth.
• With the increasing sophistication of money launderers, it becomes challenging for AML solution providers to invest in advanced technology and train their employees on using AML solutions for identifying suspicious activities. The complexity of constantly evolving AML compliance could be challenging for small and emerging businesses.
• Post-COVID-19, money laundering cases are still growing, and as a result, companies are getting involved in strategic developments to prevent them. For instance, in December 2022, ThetaRay, a provider of AI-powered transaction monitoring technology, and NOW Money, the GCC's mobile banking solution focused on financial inclusion, announced a collaboration to implement ThetaRay's cloud-based AML solution to monitor cross-border payments and support in the prevention of financial crimes and money laundering on the fintech's payments platform.