Increased transactions, compliance driving AML software market
With an IMF estimate of $1.6 trillion in money laundering annually, the global market for anti-money laundering (AML) software is growing at a high rate, creating a need for automated monitoring systems, according to a BIS Research industry report.
“The anti-money laundering software market has witnessed a high growth rate over the years owing to factors such as an increased need for automated transaction monitoring systems, an increasing number of wired transactions, and hefty fines for non-compliance with regulatory norms,” the report says. “Additionally, the integration of big data analytics with anti-money laundering software is another such factor driving the market.”
For example, Standard Chartered was ordered in April to pay $1.1 billion by US and UK authorities to settle allegations of poor money-laundering controls and breaching sanctions against countries including Iran.
Banks have gone from flagging 58,500 suspicious activities in 2012 to nearly 2.7 million transactions in 2018, according to the U.S. Treasury Financial Crimes Enforcement Network (FinCEN). That sharp increase was in part due to a $1.9 billion fine against HSBC for failure to prevent money laundering by Latin American drug cartels and facilitating trading with sanctioned countries.
The forecast from the market intelligence and technology research company points to implementation costs, security, and anti-money laundering software integration into the existing systems as significant challenges for the growth of the market.
The BIS Research report said demand is for efficient and effective AML software, including features such as transaction monitoring, currency transaction reporting, customer identity management, compliance management, sanctions screening and case management.
BIS Research said areas of growth during the report’s forecast period of up until 2023 include the cryptocurrency market, adoption of AML in the emerging economies, and robotic process automation (RPA) in AML and know your customer (KYC).
BIS Research said the U.S. government focus on making virtual currency an official mode of payment will create opportunities for vendors of AML software to expand their market and ensure that money laundering does not take place. Additionally, machine learning and artificial intelligence are among the key technologies that would guide the future of AML software market, the report said.
CaseWare’s Alessa is an anti-money laundering tool that gives companies the ability to monitor all of these issues by integrating with their current financial management systems. To learn more about Alessa, please contact us.
About Anu Sood
Anu Sood (LinkedIn | Twitter) is the Director Marketing at CaseWare RCM and is responsible for the company’s global marketing strategy. She has over 20 years of experience in product development, product management, product marketing, corporate communications, demand generation, content marketing and strategic marketing in high-tech industries.