With between $800 billion and $2 trillion being laundered every year, the need to analyze customer data and identify suspicious transactions before they’re completed could mean the difference between a financial institution’s success or failure.
According to Stratistics MRC, the Global Anti-Money Laundering (AML) Software Market accounted for $879.21 million in 2017 and is expected to reach $3,426.62 million by 2026, growing at a CAGR of 16.3% during the forecast period.
Some of the key players in the Anti-Money Laundering Software market are ACI Worldwide, Inc., Oracle, and EastNets.
An increase in money laundering cases and the increase in expenditures to thwart them are driving market growth. The lack of skilled anti-money laundering professionals is, however, restraining the market.
Anti-money laundering software is a computer program or application that is used in analyzing customer data and identifies suspicious transactions. Based on the customer data it filters the information and analyses the transaction pattern and identifies risk if there are any abnormal transactions or sudden changes in account pattern activity.
Banking, financial services, and insurance institutions are the ones most likely to be targeted by money launderers. Ever-increasing risks from financial frauds including high-profile money laundering activities represent one of the most challenging issues for these industries. In order to limit money laundering risks, it has become important for financial institutions to understand the importance and imminent need to take preventive measures.
The U.S. is facilitating market growth with far more stringent regulations for customer identification and financial institution compliance than other regions. Anti-money laundering software providers can leverage this as an opportunity for expanding their business and ensure that money laundering incidences are reduced to a greater extent.
Some of the solutions provided by anti-money laundering software providers include:
- KYC (Know Your Customer)
- Watch-list Screening
- Fraud, Risk & Compliance Management
- Transactional Monitoring
- Case Management
- Data Warehouse Management
- Alert Management & Reporting
- Analytics & Visualization
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