Anti-money laundering market to be valued at USD 1.99 bln by 2025
Million Insights has revealed in a report that the global AML market size is projected to reach USD 1.99 billion by 2025, registering CAGR of 13.6% over the forecast period 2019 to 2025.
According to the press release, rising concerns regarding growing incidences of terrorism, corruption, and organised crimes have enforced the government to take concerted action. Therefore to meet these several compliance norms set by the government, enterprises are offering anti-money laundering and fraud detection solutions to control activities of corrupt individuals and cyber-criminals, and help reduce the concern of disguising or converting illegally gained funds as legitimate income.
Moreover, due to the emergence of advanced technologies including online banking platform, Peer-to-Peer (P2P) money transfer, and online payment websites, there has been a rise in the number of e-transactions worldwide in the past few years. Although these developments have led to ease of transferring funds easily between two nodes, these have also created the vulnerabilities and various ways to transfer funds illegally that are more complex to identify or detect. In addition, criminals are withdrawing and transferring money without an IP address with the use of proxy servers or anonymising software.
Hence, it is becoming very difficult to trace and detect money laundering activities. Consequently, in order to protect financial organisations and businesses from these threats, major countries are striving to ensure that financial and institutions comply with anti-money laundering requirements.
Fintech and regulatory agencies are implementing several strategies like collaboration to enhance Customer Due Diligence (CDD) and Know Your Customer (KYC) platforms. Therefore, technologies including authentication through smartphones, biometrics, and behaviour analysis are projected to gain traction for anti money laundering (AML) market growth in the next few years.
Further key findings from the report suggest:
In 2018, software component held the largest market share of more than 62.0% in terms of revenue.
Among product types, customer identity management accounted for the largest market share of more than 32.0% of the global revenue, in 2018.
The cloud deployment type is projected to grow with the highest CAGR of 16.0% from 2019 to 2025.
In 2018, North America has dominated the market and accounted for over 48.0%, in terms of revenue.
NICE Actimize, Tata Consultancy Services Limited, Accenture, SAS Institute, and ACI Worldwide, are prominent players operating in this industry.