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 - Global Forecast to 2028
[278 Pages Report] The global AML market size 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 17.0% during the forecast period. The expansion of the AML market can be attributed to the adoption of cloud-based AML solutions to combat financial crimes.
Moreover, the AML market is experiencing growth due to the introduction of AI/ML-powered solutions and services. These factors contribute to the market’s promising growth potential, providing organizations with enhanced security measures.
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AML Market Dynamics
Driver: Growth in focus toward digital payments and internet banking
Digital payment and online banking services have grown phenomenally over the past ten years. These platforms have fundamentally changed how financial transactions are carried out, driven by technical improvements and shifting customer preferences. The economic environment has changed because of the accessibility and convenience provided by digital payment methods and online banking. The growth of e-commerce has accelerated digital payments as more and more online shoppers choose cashless purchases. User confidence has also increased because of the introduction of contactless payments and security features like biometric authentication. The increased use of digital payments allows fraudsters to commit financial crimes by stealing passwords, committing identity thefts, and impersonating clients’ identities for economic benefits. Therefore, financial institutions are adopting AML solutions on a large scale to counter such threats.
Restraint: Increased technological complexities and sophistication of attacks
Cybercriminals use sophisticated strategies to hide the source of illegal income, including ransomware attacks, identity theft, and cryptocurrency-related scams. Because of the serious risk that these activities represent to the integrity of financial systems, institutions must improve their AML skills to stay one step ahead of criminals. The techniques criminals use to finance illegal operations and launder money also advance with technology. The sophisticated cyber-attacks specifically target financial institutions to compromise their security protocols and get unauthorized access to private client information and transaction logs. By influencing or hiding illegal financial activity, these breaches might jeopardize the integrity of AML procedures and undermine AML efforts.
Opportunity: Increased use of AML in the real estate sector
The real estate sector is an attractive target for money launderers due to the large sums of money involved in property transactions and the perceived anonymity that the sector can offer. As a result, the real estate market is more vulnerable to money laundering, with criminals exploiting it to support terrorism, launder illegal cash, and avoid paying taxes. It can be challenging to track the movement of money and spot suspected money laundering activities when buying and selling real estate in multiple countries.
Governments and regulators worldwide have recently introduced new rules and policies to address the issue of rising anti-money laundering (AML) threats in the real estate industry. Certain governments are considering the establishment of public registers or registries that provide accessible information about property ownership and beneficial ownership. The utilization of real estate for money laundering will be discouraged by this transparency. Government disclosure of beneficial ownership information by real estate entities is a step towards greater transparency. It helps law enforcement identify the funding source and inhibits shell companies' use to hide real property owners.
Challenge: Lack of awareness related to government regulations and deployment of AML solutions
Some businesses might not realize how vulnerable they are to being used as a money laundering target. They may ignore the need for comprehensive AML solutions because they think their business or sector is not exposed to such hazards. They may become exposed due to this misunderstanding to criminal groups looking to take advantage of flaws in their financial systems. The lack of expertise in deploying AML solutions must be addressed in several ways. By offering instructional materials, workshops, and guidelines on the significance of AML compliance, industry groups, regulatory authorities, and governments may play a significant role in raising awareness. To show the practical advantages of efficient AML solutions, collaborative efforts combining financial institutions, technology suppliers, and industry organizations may promote best practices and share success stories.
AML Market Ecosystem
By end user, insurance is expected to grow at the highest CAGR during the forecast period.
The insurance sector encompasses a range of segments, including life insurance, health insurance, travel insurance, corporate insurance, and vehicle insurance. Insurance companies provide customers with adaptable policies as well as investment products and services that permit substantial cash deposits and withdrawals. However, the malleability of these offerings elevates the risk of illicit activities, such as money laundering, within the insurance industry. Vulnerable aspects within life insurance offerings susceptible to money laundering comprise single premium policies, high regular premium services, policy surrenders, ownership transfers, policy loans, and top-ups.
By offering, the solution segment is to grow at the highest CAGR during the forecast period.
AML solutions offer a range of benefits, including preventing money laundering and terrorism financing, fortifying the financial system's integrity against illicit activities, enhancing customer due diligence and risk assessment, ensuring regulatory compliance, mitigating the risk of penalties, and bolstering the reputation of financial institutions. Integrating AML solutions is imperative for any financial entity to safeguard its operations and clients from financial crimes. Chosen solutions must be comprehensive, scalable, user-friendly, cost-effective, and tailored to the institution's unique needs, risk level, and transaction volume. Implementing AML solutions empowers financial institutions to uphold the safety and stability of the financial ecosystem.
By region, North America accounts for the highest market size during the forecast period.
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. The region is an appealing target for money launderers looking to take advantage of vulnerabilities in various businesses and sectors due to its immense size and economic diversity. 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. The banking system's accessibility is the main source of laundered money. Another form of money laundering used by criminals in the USA is trade-based money laundering.
Key Market Players
The key players in the AML market are 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) and others.
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Report Metrics |
Details |
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Market size available for years |
2017-2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD Million/USD Billion) |
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Segments Covered |
offering, solution, service, organization size, deployment mode, end users, and regions |
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Geographies covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
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Companies covered |
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), Nelito Systems (India), Wolter Kluwer (Netherlands), Comarch (Poland), Allsec Technologies (india), Dixtior (Portugal), Temenos (Switzerland), TCS (India), ComplyAdvantage (UK), Featurespace (UK), Feedzai (Portugal), Tier1 Financial Solutions (Canada), Finacus Solutions (india), FRISS ( Netherlands), TransUnion (US), SymphonyAI (US), Napier (UK), IDMERIT (US), IMTF (Switzerlands), Innovative Systems (US), Sedicii (Ireland), Trulioo (Canada), NameScan (Australia), DataVisor (US), Gurucul (US) |
The study categorizes the AML market by offering, solution, service, organization size, deployment mode, end users, and regions.
By offerings:
- Solutions
- Services
By Solution:
- KYC/CDD and Sanction Screening
- Transaction Monitoring
- Case Management and Reporting
By Services:
- Professional Services
- Managed services
By Deployment mode:
- On-Premises
- Cloud
By Organization size:
- SMEs
- Large Enterprises
By End-user:
- Banks & Financial Institutes
- Insurance
- Gaming & Gambling
By Region:
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- Latin America
Recent Developments
- In April 2023, NICE Actimize launched SAM-10 as Part of its Anti-Money Laundering suite of solutions. It is an AI-Based AML Transaction Monitoring Innovation With Multilayered Analytics to Better Detect Suspicious Activity.
- In January 2023, IMTF acquired the Siron anti-money laundering and compliance solutions developed by US-based FICO Corporation, a leading analytical business intelligence software provider. With this acquisition, IMTF has now taken over the management of all Siron anti-financial crime solutions worldwide.
- In December 2022, NICE Actimized Partners with The Knoble. The Knoble's Financial Crimes Working Group will get expertise from NICE Actimize in the areas of technology, research, and other resources to aid in the identification and elimination of fraud in human trafficking-related operations.
- In November 2022, Hoist Finance partnered with SAS anti-money laundering (AML) technology supported by Consortix, a strategic SAS AML partner, to fight against financial crime. Hoist Finance is a Swedish credit management company operating in several European countries.
- In February 2022, GB Group acquired Verifi Identity Services Limited, commonly known as “Cloudcheck,” a provider of electronic identity verification (IDV) and anti-money laundering (AML) solutions in New Zealand.
Frequently Asked Questions (FAQ):
What are the opportunities in the global AML market?
Higher adoption of advanced analytics in AML, Integration of AI, ML, and big data technologies in developing AML solutions, adoption of cloud-based AML solutions to combat financial crimes, and Increased use of AML in the real estate sector are a few factors contributing to the growth and creating new opportunities for the AML market.
What is the definition of the AML market?
MarketsandMarkets defines anti-money laundering as a practice by financial institutes such as banks, insurance, or gaming & gambling enterprises to monitor and prevent illegal activities supporting money laundering and terrorist financing. These banks and financial institutes follow policies and regulations during KYC/CDD, transaction screening, and monitoring and compliance to avoid fraudulent and illegal activities around the financial systems.
Which region is expected to show the highest market share in the AML market?
North America is expected to account for the largest market share during the forecast period.
What are the major market players covered in the report?
Major vendors, namely, 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).
What is the current size of the global AML market?
The global AML market size 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 17.0% during the forecast period.
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The study involved major activities in estimating the current market size for the AML market. Exhaustive secondary research was done to collect information on the AML industry. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain using primary research. Different approaches, such as top-down and bottom-up, were employed to estimate the total market size. After that, the market breakup and data triangulation procedures were used to estimate the market size of the segments and subsegments of the AML market.
Secondary Research
In the secondary research process, various secondary sources were referred to for identifying and collecting information regarding the study. The secondary sources included annual reports, press releases, investor presentations of AML solution and service vendors, forums, certified publications, and whitepapers. The secondary research was mainly used to obtain key information about the industry’s supply chain, the total pool of key players, market classification and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from both markets- and technology-oriented perspectives, all of which were further validated by primary sources.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side included various industry experts, including Chief Executive Officers (CEOs), Vice Presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the AML market.
In the market engineering process, top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform the market estimation and market forecasting for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to list key information/insights throughout the report.
Following is the breakup of the primary study:
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Market Size Estimation
Top-down and bottom-up approaches were used to estimate and validate the size of the global AML market and estimate the size of various other dependent sub-segments in the overall AML market. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their revenue contributions in respective regions were determined through primary and secondary research. The entire procedure included the study of the annual and financial reports of the top market players, and extensive interviews were conducted for key insights from the industry leaders, such as CEOs, VPs, directors, and marketing executives. All percentage splits and breakups were determined using secondary sources and verified through primary sources.
Bottom-Up approach:
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Top-Down approach:
Data Triangulation
After arriving at the overall market size using the market size estimation processes explained above, the market was split into several segments and subsegments. The data triangulation and market breakup procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from both the demand and supply sides.
Market Definition
MarketsandMarkets defines anti-money laundering as a practice by financial institutes such as banks, insurance, or gaming & gambling enterprises to monitor and prevent illegal activities supporting money laundering and terrorist financing. These banks and financial institutes follow a set of policies and regulations during KYC/CDD, transaction screening, and monitoring and compliance to avoid fraudulent and illegal activities around the financial systems.
Key Stakeholders
- Chief technology and data officers
- Anti-money laundering service professionals
- Business analysts
- Information technology (IT) professionals
- Government agencies
- Investors and venture capitalists
- Small and medium-sized enterprises (SMEs) and large enterprises
- Third-party providers
- Consultants/consultancies/advisory firms
- Managed and professional service providers
Report Objectives
- To describe and forecast the global anti-money laundering (AML) market by offering, deployment mode, organization size, end user, and region.
- To forecast the market size of five main regions: North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and Latin America.
- To analyze the subsegments of the market concerning individual growth trends, prospects, and contributions to the overall market.
- To provide detailed information related to major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the market.
- To analyze the opportunities in the market for stakeholders and provide the competitive landscape details of major players.
- To profile the key players of the AML market and comprehensively analyze their market shares and core competencies.
- To track and analyze competitive developments, such as mergers & acquisitions (M&A), new product developments, and partnerships & collaborations, in the market.
- To track and analyze the recession impact on the AML market
Customization Options
With the given market data, MarketsandMarkets offers customizations based on company-specific needs. The following customization options are available for the report:
Geographic Analysis
- Further breakup of the Asia Pacific market into countries contributing 75% to the regional market size
- Further breakup of the North American market into countries contributing 75% to the regional market size
- Further breakup of the Latin American market into countries contributing 75% to the regional market size
- Further breakup of the Middle Eastern and African market into countries contributing 75% to the regional market size
- Further breakup of the European market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in AML Market