Anti-Money Laundering (AML) Market Size By Component (Solution [Customer Identity Management, Compliance Management, Currency Transaction Reporting, Transaction Monitoring], Service [Professional Service, Managed Service]), By Deployment Model (On-premise, Cloud), By Organization Size (Large Enterprises, SMEs), By Application (BFSI, IT & Telecom, Government & Public Sector, Healthcare, Retail, Transportation & Logistics), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

Published Date: Aug 2021  |  Report ID: GMI5114  |  Authors: Preeti Wadhwani, Smriti Loomba

Report Format: PDF   |   Pages: 300   |   Base Year: 2020




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Anti-Money Laundering Market size exceeded USD 2 billion in 2020 and is poised to register gains at over 10% CAGR from 2021 to 2027. Increasing stringent regulations and compliance requirements for enterprises is expected to drive the industry growth. Various government bodies across the world have enacted the regulations & laws to counter terrorism funding and combat money laundering incidents. AML laws differ across countries, making it crucial for financial institutes to ensure that their business is compliant with policies specific to the country of operation. These policies are fueling the market demand for AML solutions.
 

Anti-Money Laundering Market

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The AML industry has received a strong impetus amid the ongoing COVID-19 pandemic. The market acceleration has been substantial as criminals are continuing to exploit the opportunities created by the pandemic with mounting cases of the exploitation of economic stimulus measures. For instance, in July 2020, the Financial Action Task Force (FATF), reported USD 5.5 million worth of money laundering from Paycheck Protection Program in Washington, U.S. Fraud detection & prevention methods are observing industry expansion in terms of the post-COVID-19 impacts, supporting the market growth.
 

Anti-Money Laundering (AML) Market Report Coverage
Report Coverage Details
Base Year:2020
Market Size in 2020:2 Billion (USD)
Forecast Period:2021 to 2027
Forecast Period 2021 to 2027 CAGR:10%
2027 Value Projection:5 Billion (USD)
Historical Data for:2016 to 2019
No. of Pages:300
Tables, Charts & Figures:472
Segments covered:Component, Deployment Model, Enterprise Size, Application, and Region
Growth Drivers:
  • Increasingly stringent penalties on non-compliance with AML regulations
  • Rise in revenue loss due to numerous financial frauds
  • Growing use of electronic and digital payment methods
  • Increase in the frequency of cyberattacks and frauds
  • Rapid surge in deployment of AI and big data analytics
Pitfalls & Challenges:
  • Higher costs involved in deployment of AML solutions
  • Lack of expertise and limited skillsets in AML industry

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High importance on monitoring large transactions to expand the market size of the currency transaction reporting segment in the U.S.

U.S. Anti-Money Laundering Market Size By Solution

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In the U.S., the Currency Transaction Reporting (CTR) segment is anticipated to generate around USD 120 million revenue by 2023. The CTR is a part of anti-money laundering efforts to ensure that the money is not being used for illicit or regulated activities. CTR has evolved to become progressively more efficient and technologically advanced. For instance, most financial institutions now have programs that automatically create CTRs when transactions of nearly USD 10,000 are successfully completed and tag suspicious transactions.
 

Economies of scale offered by the cloud model to augment UK market value

The UK cloud deployment model is set to account for more than 40% of the anti-money laundering market share by 2027. The growth is attributed to the reduced cost of establishing the required IT infrastructure. The other associated benefits of cloud-based deployment, such as flexibility and a steady improvement in security features, are expected to propel the segment demand.
 

The increasing risks of financial misconduct, fostering the market revenue of large enterprises in Japan

Japan Anti-Money Laundering Market Share By Organization Size

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The large enterprises in Japan are projected to witness growth rate of over 15% between 2021 and 2027. Large enterprises in the region continue to face the substantial risk of money laundering by organized crime including Japanese organized crime groups (the Yakuza), Mexican drug trafficking organizations, and other domestic & international criminal elements. It was reported that between 2018-2020, AML cases across large organizations increased by 40%.
 

The deficiency in the nation’s cryptocurrency system, which occurred as a result of rapid growth of the crypto sector and lack of a regulatory framework, has been vulnerable to AML-related crimes, which provides a lucrative market opportunity for AML vendors.
 

Stringent fines for compliance violation promoting the German BFSI market growth

The German BFSI segment captured a substantial market revenue share of above 40% in 2020. The country has been observing a steady spike in money laundering incidents. The Germany's Financial Intelligence Unit reported that suspected cases of money laundering and terrorist financing jumped by 50% in 2020. To combat the threat, Germany passed several anti-money laundering measures, such as stricter regulations obligating real estate agents, notaries, precious metals dealers, and auction houses, to declare suspicious transactions.
 

For instance, in June 2020, the Financial Conduct Authority (FCA) fined Commerzbank USD 47.4 million for failing to put adequate AML systems and controls in place, between October 2012 and September 2017. Deutsche Bank was also fined USD 41 million for failing to maintain an effective anti-money-laundering program.
 

Mature regulatory framework and increased transparency in financial reporting will boost the European market statistics

Europe Anti-Money Laundering Market Share By Country

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Europe anti-money laundering market is estimated to observe about 15% CAGR through 2027. The industry is characterized by stringent government regulations on data protection and identity protection such as the EU’s GDPR and Strong Customer Authentication (SCA). These are expected to improve the efficiency in fraud detection solutions and effectively spur the regional market demand.
 

The European Commission published reports that assess the current state of the EU’s AML & counter-terrorist financing framework, making recommendations to improve it. The European Central Bank also proposed to set up a permanent cross-border agency to police the financial crime and transform recent AML directives into an international regulation, propelling the industry statistics.
 

AI powered AML solutions to become the key market differentiator

The global AML market remains highly fragmented with fintech giants, such as FIS, Fiserv, Experian, and ACI Worldwide, holding a major chunk of the industry. Prominent companies are placing an ever-growing emphasis on delivering advanced AML solutions, catering to the dynamic regulatory requirements of the financial industry, especially during the peak of fraud incidents amid the ongoing pandemic. The industry has also witnessed several strategic alliances between key players to launch new products with added functionalities, maintaining the revenue share & profitability.
 

Some of the key anti-money laundering market players are Accenture PLC, ACI Worldwide, BAE Systems PLC, CaseWare International Inc., Cognizant Technology Solutions Corporation, Experian PLC, Fair Isaac Corporation (FICO), Finacus Solutions Private Limited, FIS, Inc., Fiserv Inc., Lexisnexis Risk Solutions Inc., Napier Technologies Limited, Nelito Systems Ltd., NICE Actimize, OpenText Corporation, Oracle Corporation, SAS Institute, Inc., Tata Consultancy Services Ltd. (TCS), Trulioo Information Services Inc., and WorkFusion, Inc.
 

This market research report on anti-money laundering (AML) includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027 for the following segments:

Market, By Component

  • Solution
    • Customer Identity Management
    • Compliance Management
    • Currency Transaction Reporting
    • Transaction Monitoring
  • Service
    • Professional Service
    • Managed Service

Market, By Deployment Model

  • Cloud
  • On premise

Market, By Organization Size

  • Large Enterprises
  • SMEs

Market, By Application

  • BFSI
  • IT & Telecom
  • Government & Public Sector
  • Healthcare
  • Retail
  • Transportation & Logistics
  • Others
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Netherlands
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia & New Zealand (ANZ)
    • Singapore
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Colombia
  • Middle East & Africa
    • Saudi Arabia
    • UAE
    • Israel
    • South Africa
       

Frequently Asked Questions (FAQ) :

Anti-money laundering market size surpassed USD 2 billion in 2020 and will observe CAGR of over 10% through 2027, says this GMI report.
BFSI sector in Germany had captured a market share of over 40% in 2020 and will grow with increased cases of money laundering in the country.
Cloud deployment segment in the U.K. will capture over 40% of anti-money laundering market share by 2027 owing to reduced cost of establishing the required IT infrastructure.
Large enterprises segment in Japan will witness a CAGR of over 15% till 2027 as the companies face significant risk of money laundering by organized crime.
Europe market is set to grow at 15% CAGR through 2027 owing to the stringent regulatory scenario for data and identity protection in the region.

Premium Report Details

  • Published Date: Aug 2021
  • Pages: 300
  • Tables: 434
  • Charts / Figures: 38
  • Companies covered: 20
  • Countries covered: 22

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