In the technology age, the global Anti-Money Laundering solutions market size more and more increasing. There are many studies on this subject, and according to research, it is predicted that the Global AML Solutions Market will grow from USD 2.2 Billion in 2020 to USD 4.5 Billion by 2025.
So what are the main factors affecting the growth of the market for AML Compliance Software solutions? Why do organizations at risk of money laundering choose or should this software? What are the Anti-Money Laundering solutions? How Do These Solutions Work? If you have questions like these on your mind, continue reading our blog and shed light on the answers to your questions.
AML Compliance Software Solutions Market Size and Forecast
The global anti-money laundering (AML) software solution market is growing in conjunction with increased money laundering cases. The globally growing technological development, which includes integrating the organizations' IT technologies, is expected to affect this market positively.
The AML software solution market is expected to record a 16.0% CAGR over the forecast period. It is expected to reach an overall market size of US $ 3.5 billion by 2027. Also, the AML compliance software solutions market will likely show rapid growth at the end of the forecast period. The market is divided into distribution, genre, and end-use industries. It is subdivided into on-premises and cloud on a distribution basis. The internal structure is expected to be the most significant sub-segment during the forecast period. However, the cloud-based sub-segment is expected to record the highest CAGR in the forecast period. It is anticipated that the increasing adoption of cloud-based services by various organizations will be the main driving force behind the sub-segment growth. It is based on type, subdivided into transaction monitoring systems, currency transaction reporting, customer identity management systems, and compliance management software. Transaction monitoring systems are expected to generate the most significant revenue in the forecast period.
The increasing adoption of transaction monitoring systems by various financial institutions to reduce the risk of money laundering is expected to be the main driving force behind the lower segment's growth. The end-use industry is subdivided into IT and telecommunications, healthcare, BFSI, transport and logistics, manufacturing, defense and government, retail, energy, utilities, etc. BFSI is expected to be the leading sub-segment in the forecast period. The increased implementation of the anti-money laundering (AML) device in BFSI is expected to reduce the incidence of money-related fraud. For more information, you can visit Research Nester's website.
Factors of Growth in the AML Software Solutions Market
As it is known, with the development of technology, money launders develop new methods to overcome the systems. Money launderers will continue to improve their systems as they get in the way. In response to improving their systems, organizations at risk of money laundering also need advanced global AML solutions. Global AML software solutions can detect who the customer actually is, whether they are on any banned, sanctioned lists, and even detect whether there is a risk of money laundering in transactions. In this case, the risk of money laundering incidents is minimized, and the organization protects itself against potential financial crimes.
Apart from that, money laundering crimes seriously harm countries' economies, so global and local regulators make some regulations to prevent money laundering. Who must comply with these regulations in each country may vary, but basically, institutions with potential ML / TF risk such as banks and fintech have been obliged to comply with these regulations. Companies that do not comply with regulations may be subject to financial penalties and even more significant penalties due to audits. In this case, businesses using AML software solutions can easily protect themselves against regulatory penalties and easily pass the audit process.
As a result, businesses choose AML software solutions to protect themselves from ML / TF risks, regulatory penalties and avoid losing their reputation due to a possible ML incident.
Anti-Money Laundering Software Solutions
Money laundering solutions mainly examine customer involvement and subsequent identification of the customer and solutions to monitor customers' transactions and stop the transaction if financial crimes such as money laundering are discovered. In addition, it includes solutions such as detecting Adverse Media news about customers and controlling the exchange of money between two people. Below we will examine four AML solutions: AML Screening and Monitoring, AML Transaction Monitoring, Adverse Media Screening, and Transaction Screening.
AML Screening, or Name Screening solution, helps customers identify who they really are and their risks at the first participation and afterward. With this software, customers are scanned into banned lists, sanctions, and PEP lists, and their risks are identified and examined by the compliance team.
It is software that generates alarms and reports these alarms to the compliance team if any risk is noticed during customer transactions. According to market research, Transaction Monitoring systems are expected to generate the largest revenue in the forecast period.
There may be negative news about customers on regulatory websites in the media. With this software, the data of the news is collected and displayed. Thus, in addition to looking at whether there are lists such as sanctions and banned customers, you can also review this news.
It is software where senders and receivers are controlled automatically.
Sanction Scanner AML Software Solutions
Sanction Scanner is a RegTech company that provides AML Compliance software solutions and is one of the best global players in the AML software market. As Sanction Scanner, the main goal is to minimize the money laundering risks of regulated organizations and protect them against regulatory penalties.
You can scan each of your customers in the Sanction Scanner's +3000 Sanctions and PEP list, which is updated every 15 minutes. With the AML Transaction Monitoring solution, you can instantly check your customers' transactions and generate alarms. Our solutions are artificial intelligence supported and have dynamic rules. With Sanction Scanner solutions, it is straightforward to comply with regulations, minimize risks and save time. Talk to us or request a demo and discover what we can do for you.