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Cross Analysis of Component w.r.to. End Use Industry (USD Million), 2024-2037
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Cross Analysis of Component w.r.to. End Use Industry (USD Million), 2024-2037
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Cross Analysis of Component w.r.to. End Use Industry (USD Million), 2024-2037
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Cross Analysis of Component w.r.to. End Use Industry (USD Million), 2024-2037
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Cross Analysis of Component w.r.to. End Use Industry (USD Million), 2024-2037
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Cross Analysis of Component w.r.t. End Use Industry (USD Million), 2024-2037
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Cross Analysis of Component w.r.t. End Use Industry (USD Million), 2024-2037
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Anti-money Laundering Solution Market size is poised to reach USD 24.41 Billion by the end of 2037, growing at a CAGR of 17.04 during the forecast period, i.e., 2025-2037. In the year 2024, the industry size of the anti-money laundering solution is evaluated at USD 3.20 Billion.
Money laundering is one of the most significant threats to global security and can be used for a variety of purposes, including drug trafficking and terrorist financing. Compliance with anti-money laundering standards can provide a safety net for businesses in the face of financial losses and damage to their reputation. According to United Nations Office on Drugs and Crime, it estimates that between 2% and 5% of global GDP is laundered each year, which would amount to around 715 billion dollars and 1.87 trillion.
Users using digital banking on tablets, computers, or phones can continue their activities by logging in with the details of their digital profile. When user log in to a financial institution account, the system allows real users to conceal their identity. Moreover, it can conduct this procedure anywhere on Earth.
The system enables the actual user to conceal their identity when logging on to a financial institution account, and it's capable of doing this from anywhere in the world. In addition, due to the growth of electronic payments and Internet banking solutions, there has been a high demand for anti-money laundering solution market
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
17.04% |
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Base Year Market Size |
USD 3.20 Billion |
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Forecast Year Market Size |
USD 24.41 Billion |
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Regional Scope |
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Component (Software, Service)
Software segment in the anti-money laundering solution market is set to cross USD 17.7 Billion by the end of 2037. In terms of components, the software segment is anticipated to hold the largest AML solution market revenue share of USD 17.7 billion during the forecast timeline. The need for sophisticated anti-money laundering systems that can identify and block suspicious transactions in real time has risen due to the rise in sophisticated financial criminal activities such as fraud, cybercrime, and money laundering.
The amount and complexity of financial transactions are growing, as is the use of anti-money laundering software, due to the quick expansion of digital payment channels such as online and mobile banking and cryptocurrencies. NICE Actimize introduced SAM-10, a new anti-laundering program, in April 2023. It uses artificial intelligence (AI) and multilayered analytics to improve the identification of suspicious behavior while lowering false positives.
End Use Industry (BFSI, Defense and Government, Gaming and Gambling)
In anti-money laundering solution market, BFSI segment is expected to cross USD 10.75 Billion by the end of 2037. Because the BFSI industry handles so many financial transactions regularly, it is vulnerable to money laundering schemes. Robust AML processes and an increasing volume of transactions help identify and shield consumers from financial crime.
Furthermore, information exchange and coordinated efforts to prevent financial crimes are facilitated by collaboration between BFSI institutions, regulatory bodies, law enforcement, and industry groups. The European Banking Authority introduced EuReCA, the EU's primary database for combating the funding of terrorism and money laundering, in January 2022. This database will function as a reporting mechanism for banks. The EBA will utilize this information to assess ML/TF threats in the EU financial sectors.
Our in-depth analysis of the global anti-money laundering solution market includes the following segments:
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Component |
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Type |
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Deployment Mode |
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Organization Size |
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End Use Industry |
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North American Forecasts
Anti-money laundering solution market size for North America region is expected to exceed USD 6.85 Billion by 2037. The US is especially vulnerable to all forms of illicit money because of the scale of the US financial system and the significance of the US dollar in the payment system that supports worldwide trade.
Criminals and professional money launderers still locate, transport, and try to hide illicit earnings using a variety of strategies, including time-tested ones. Some examples are using cash for traditional transactions, making pricey or high-end investments, and keeping up with the quickly evolving world of virtual assets and related service providers such as decentralized finance and the growing use of technologies that increase anonymity. The US was found to have the highest number of AML events per capita in the world. The US accounts for 84 % of the total, of the top 10 countries with the highest incidence of AML per capita.
Money laundering is a significant and concerning matter in the United States. The region is appealing aim for money laundering owing to its vast size and vulnerabilities in multiple domains. Therefore, the demand for AML solutions in the region is at a high peak as a result driving the anti-money laundering solution market growth.
The government in Canada has introduced various regulatory standards to put a stop to the escalating money laundering cases in the region. In Canada's AML regime, the Criminal Code and the Proceeds of Crime and Terrorist Financing Act play an active role.
European Market Statistics
By the end of 2037, Europe anti-money laundering solution market is estimated to exceed USD 6.33 Billion. Criminals in this region are frequently launder money using a variety of means, such as creating fictitious identities, using shell companies and trusts, and orchestrating transactions to avoid discovery. In addition, the money laundering cases are high in the Europe region. According to a study in the United Kingdom, approximately 112 billion are laundered every year. It is estimated that 3% of global GDP is laundered every year around the world. The amount of laundered money in the United Kingdom amounts to around 4.3% of GDP each year.
Credit bureaus keep an eye out for any unusual behavior and draw attention to any unexpected or contradicting information found on credit reports. This helps to identify and stop money laundering. For instance, TransUnion, a worldwide information and analytics supplier, became one of SmartSearch's identity-check providers for its digital anti-money laundering solution in April 2023. SmartSearch now offers a 'triple-bureau' electronic verification and digital compliant platform, leveraging global data partners Experian, Equifax, and TransUnion to give regulated firms a match and pass rate.
The United Kingdom has strict and advanced legislation in place to prevent financial crimes. Money laundering offenses have been highlighted in the United Kingdom's Anti Money Laundering Regulations, which have made it clear that money laundering should be avoided. The UK is also a member of the Financial Action Task Force. In line with FATF guidelines and EU directives on Money Laundering, the United Kingdom's anti-money laundering legislation is in line with them.
Germany is currently significant hub for money laundering and crime. To protect the integrity of the financial system and maintain investor confidence, this has led to a focus on strengthening anti money laundering safeguards. Germany has increased its investment in cybersecurity and fraud detection tools, as well as efforts to increase public awareness of the risk of fraud, due to the advent of digital financial services.
The growth of the AML solution market in France can be propelled by the increasing integration of AML solutions in the financial institutions.
Author Credits: Abhishek Verma
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