Global Market Share: Anti-Money Laundering, 2022

Quadrant Knowledge Solutions Reveals that Anti-Money Laundering Market is Projected to Register a CAGR of 14.20% by 2027.

The global increase in instances of money laundering is due to the optimistic growth of the potential market. The growing use of virtual currencies and the accessibility of the internet are two major factors contributing to the increase in money laundering incidents around the world. Financial services and banks are grappling with adhering to regulations such as BSA, FinCEN, Fourth AMLD, Fifth AMLD, Hong Kong Monetary Authority (HKMA), Monetary Authority of Singapore (MAS), and more with their legacy systems, thereby adversely impacting meeting deadlines and slowing the overall process. To further add to the woes driven by digital transformation and emerging technologies, financial crimes are increasing in frequency and complexity, fuelling a rapid rise in money laundering activities.

Even with the use of AML solutions, it is getting more challenging to identify frauds earlier due to the rise in cyberattacks, including phishing, card fraud, crypto scams, skimming, identity fraud, money laundering, investment fund fraud, terrorist funding, and sanctions violation. Banks employ a variety of procedures and technological solutions to comply with AML regulations, which combine KYC data and systems into a single repository Financial crimes are becoming more frequent and complex, which is aggravating the problems brought on by digital transformation and emerging technologies and fuelling a sharp increase in money laundering activities. As more complex compliance emerges, financial organizations face the problem of safeguarding their assets. The absence of robust compliance within financial institutions is one of the main challenges in the AML sector.

To combat these challenges, organizations are turning to Fintech vendors and embracing anti-money laundering solutions to detect and mitigate conventional and digital money laundering activities. The vendors are offering sophisticated technologies powered, backed up by sophisticated technologies such as AI, ML, and RPA to boost the effectiveness and legitimacy of AML solutions. The utilization of technology advances starts with customer onboarding and continues through fraud detection, monitoring, investigation, alert triggering, case reporting, and flagging questionable transactions.

Anti-Money Laundering (AML) solutions help financial institutions and government organizations to monitor and analyse customer data and transactions to detect, prevent, and report suspicious money laundering activities and improve AML compliance. Modern AML solutions use advanced analytics, artificial intelligence, and machine learning to predict potentially fraudulent activities to further strengthen the organization's AML compliance readiness.

FIs and FinTech vendors are increasingly looking forward to collaborating in the journey to fight against fraud and money laundering activities. To battle against the sophisticated and integrated frauds across the globe, FIs and banks are collaborating to share data and intelligence on financial crime. Also, Due to emerging trends of cryptocurrency and its involvement in trade-based money laundering (TBML) and other fraud activities, government authorities and regulators have increased their focus on all institutions dealing with cryptocurrency and virtual assets. Technologies such as AI, ML, RPA, advanced analytics, and blockchain have completely metamorphosized the financial landscape. FIs are adopting innovative technologies and integrating intelligent automation, AI, and ML into their AML compliance solutions to fulfill both customers' and regulators' requirements.