Anti-Money Laundering Software Has Increased the Growth of Online Banking

Introduction

According to Anti-money Laundering Software Statistics, Anti-money laundering software (AMLs) is crucial for financial institutions to detect and prevent illegal activities like money laundering and terrorism financing.

It monitors transactions in real-time, using advanced technologies like AI and machine learning to identify suspicious patterns.

Key features include transaction monitoring, customer due diligence (CDD), watchlist filtering, and regulatory reporting for compliance with laws like the USA PATRIOT Act and EU directives.

AML software integrates seamlessly with banking systems, ensuring comprehensive monitoring and reducing the risk of legal penalties and reputational damage.

The market for AML software continues to grow due to increasing regulatory demands and the complexity of global financial transactions.

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• In 2023, the global Anti-Money Laundering (AML) software market revenue was recorded at USD 2.6 billion.
• By 2033, the market is anticipated to achieve a total revenue of USD 10.3 billion. With software revenue at USD 6.85 billion and services revenue at USD 3.45 billion.
• On-premise deployments account for 68% of the market share, reflecting the continued reliance on traditional. Internally managed systems that offer robust security and control.
• The regional analysis of the global Anti-Money Laundering (AML) market reveals a predominant share held by North America, accounting for 46.0% of the market.
• In 2024, the top 20 origins of laundered money are dominated by the United States. Which accounts for $13,20,228 million annually, representing 46.3% of the total.
• Investment in anti-money laundering (AML) and financial crime (FinCrime) technology companies showed significant fluctuations from 2018 to 2022.
• In the United States, the Bank Secrecy Act (BSA) mandates that financial institutions implement AML programs, conduct customer due diligence, and file suspicious activity reports (SARs) to detect and prevent money laundering​​.

Global Anti-Money Laundering Market Overview

Global Anti-Money Laundering Market Size

• The global Anti-Money Laundering (AML) market has exhibited significant growth over the past decade at a CAGR of 15.25%.
• In 2021, the market revenue was valued at USD 1.18 billion.
• The trend persisted, with the market reaching USD 5.62 billion in 2032 and an impressive USD 6.48 billion in 2033.

Competitive Landscape of Global Anti-Money Laundering Market

• The presence of several key players marks the competitive landscape of the global Anti-Money Laundering (AML) market.
• Tata Consultancy Services Limited holds the largest market share at 18%, followed closely by NICE Actimize with 17%.
• Oracle Corporation commands a significant portion of the market. With 12%, while Cognizant Technology Solutions Corporation accounts for 10% of the market.
• BAE Systems and SAS Institute Inc. each hold a 9% share.
• ACI Worldwide Inc. and Fiserv Inc. each control 8% of the market.
• The remaining 10% is distributed among various other key players, indicating a moderately fragmented market with significant contributions from both large and niche entities.

Regional Analysis of Global Anti-Money Laundering Market

• The regional analysis of the global Anti-Money Laundering (AML) market reveals a predominant share held by North America, accounting for 46.0% of the market.
• Europe follows with a 22.0% share, indicating strong adoption and regulatory frameworks in these regions.
• The Asia-Pacific (APAC) region contributes 18.0% to the market, reflecting growing awareness and implementation of AML solutions.
• South America and the Middle East & Africa (MEA) hold smaller shares, with 8.0% and 6.0%, respectively, indicating emerging opportunities and potential for growth in these regions.  

Anti-Money Laundering Software Market Overview

Global Anti-Money Laundering Software Market Size

• The global Anti-Money Laundering (AML) software market has demonstrated robust growth at a CAGR of 14.8%, with revenues increasing significantly over the years.
• In 2023, the market revenue was recorded at USD 2.6 billion.
• The growth trajectory is expected to persist, with revenues reaching USD 9.0 billion in 2032 and an impressive USD 10.3 billion in 2033.

Global Anti-Money Laundering Software Market Size – By Component

• The global Anti-Money Laundering (AML) software market is segmented by component, encompassing both software and services revenue.
• In 2023, the total market revenue was USD 2.6 billion, with software contributing USD 1.73 billion and services adding USD 0.87 billion.
• Finally, by 2033, the market is anticipated to achieve a total revenue of USD 10.3 billion. With software revenue at USD 6.85 billion and services revenue at USD 3.45 billion.

Anti-Money Laundering Software Market Share –  By Deployment Mode

• The global Anti-Money Laundering (AML) software market is segmented by deployment mode, with a significant preference for on-premise solutions.
• On-premise deployments account for 68% of the market share. Reflecting the continued reliance on traditional, internally managed systems that offer robust security and control.
• In contrast, cloud-based deployments hold a 32% market share, indicating a growing trend toward flexible, scalable, and cost-effective solutions.

Amount of Money Laundered Per Year

• In a 2009 report from the United Nations Office on Drugs and Crime (UNODC). It was found that criminal proceeds from drug trafficking and organized crime constituted 3.6% of global GDP, with approximately 2.7% (USD 1.6 trillion) of these funds being laundered.
• These findings are consistent with earlier estimates by the International Monetary Fund in 1998. Which indicated that global money laundering could range from two to five percent of the world’s GDP.
• Using 1998 data, this translates to money laundering estimates ranging from USD 590 billion to USD 1.5 trillion.

Top Origins of Laundered Money

• In 2024, the top 20 origins of laundered money are dominated by the United States. Which accounts for $13,20,228 million annually, representing 46.3% of the total.
• Italy follows with $1,50,054 million (5.3%), and Russia contributes $1,47,187 million (5.2%).
• China and Germany are also significant sources, with $1,31,360 million (4.6%) and $1,28,266 million (4.5%) respectively.
• France adds $1,24,748 million (4.4%), and Romania $1,15,585 million (4.1%).
• Other notable origins include Canada with $82,374 million (2.9%), the UK with $68,740 million (2.4%), and Hong Kong with $62,856 million (2.2%).

Money Laundering Events Across the Globe

• Globally, money laundering events are predominantly linked to drug trafficking, which accounts for 29.30% of cases.
• Financial fraud follows closely, constituting 22.20% of money laundering incidents.
• Direct money laundering activities represent 17.60% of the total events.
• Other miscellaneous activities contribute 14.30% to the overall statistics.
• Anti-Money Laundering (AML) compliance failures account for 9.50%, highlighting significant gaps in adherence to regulatory standards.
• Violations of AML policies are responsible for 3% of the events.
• International sanctions breaches constitute 1.80%, while regulatory breaches and reporting failures each account for 1.20% of money laundering events.

Judicial Convictions for Money Laundering Crimes

• From 2013 to 2017, the sentencing for money laundering convictions by the courts in Hong Kong varied significantly by term of imprisonment.
• In 2013, there were 68 convictions resulting in sentences under two years. 36 convictions with sentences between 2 to 4 years. 15 convictions leading to 4 to 6 years of imprisonment, and 5 cases resulting in sentences over six years.
• By 2017, the trend of shorter sentences continued, with 50 under two years. 31 between 2 to 4 years, 4 cases resulting in 4 to 6 years, and just 1 case resulting in a sentence over six years.

Top AML Software Solutions

• The AML software market is rapidly expanding. Offering a range of solutions tailored to meet compliance needs for businesses of all sizes.
• Refinitiv World-Check Risk Intelligence offers reliable data to prevent illegal activities.
• Trulioo automates KYC and KYB compliance to meet AML and CDD requirements.
• Lightico simplifies KYC processes through digital identification.
• Sanction Scanner provides cost-effective AML solutions.
• DueDil aids businesses in KYB compliance and customer onboarding through its API.

AML Software Investment Statistics  

Global Investment in AML and FinCrime Tech Companies

• Investment in anti-money laundering (AML) and financial crime (FinCrime) technology companies showed significant fluctuations from 2018 to 2022.
• In 2018, the total investment was USD 0.8 billion across 166 deals.
• The upward trend continued in 2021, with investments peaking at USD 3.7 billion across 181 deals. Indicating heightened interest and confidence in the sector.
• However, in 2022, investment levels dropped to USD 2.1 billion with 170 deals. Reflecting a more cautious approach in the market.

Regulations for Anti-Money Laundering Software

• Regulations for anti-money laundering (AML) software vary significantly across different countries. Reflecting diverse legal frameworks and enforcement practices.
• In the United States, the Bank Secrecy Act (BSA) mandates that financial institutions implement AML programs. Conduct customer due diligence, and file suspicious activity reports (SARs) to detect and prevent money laundering​​.
• Germany’s AML efforts are governed by the Money Laundering Act (GwG), which sets out requirements for customer due diligence, record-keeping, and reporting of suspicious transactions​​.
• In Hong Kong, the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) requires financial institutions to establish AML programs, conduct thorough customer due diligence, and report suspicious transactions​​.
• India’s Prevention of Money Laundering Act (PMLA) mandates similar measures, with stringent penalties for non-compliance and a robust framework for reporting and analyzing suspicious transactions​​.

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