Report

The Anti-Money Laundering Solutions Market size is estimated at USD 3.43 billion in 2025, and is expected to reach USD 6.91 billion by 2030, at a CAGR of 15.06% during the forecast period (2025-2030).

Anti-money laundering (AML) refers to a set of laws, regulations, and procedures designed to stop criminals from making income through illegal actions. AML solutions encompass software and services created to help organizations such as financial institutions, money-service businesses, and insurance companies comply with AML regulations.

Key Highlights
- Apart from the moral imperative to fight money laundering and terrorist financing, financial institutions also use AML tactics to comply with regulations that require them to monitor customers and transactions continually and report suspicious activity to avoid consent orders along with civil and criminal penalties that could be levied due to non-compliance or negligence, and for reduction of fines, IT and employee costs, and capital reserved for risk exposure.
- Money laundering, fraud, cyberattacks, bribery, and corruption all increased due to the COVID-19 pandemic. Since many organizations, particularly those in the BFSI sector, were transforming to a more digital future, the risk of financial cybercrime was significant. The risk is worsened because of most people's lack of familiarity with internet platforms. These factors generate an atmosphere suitable for cybercriminals to exploit, and they already had a devastating impact on the financial industry.
- The increasing amount of data on networks due to the high usage of digital platforms has increased the load on the infrastructure security of banks and financial institutes. Banks are being attacked by hackers despite taking several precautions, resulting in huge losses. Hence, the demand for anti-money laundering solutions is increasing, impacting the market's growth.
- With the increasing sophistication of money launderers, it becomes challenging for AML solution providers to invest in advanced technology and train their employees on using AML solutions to identify suspicious activities. The complexity of constantly evolving AML compliance could be challenging for small and emerging businesses.
- Post-COVID-19, money laundering cases are still growing, and as a result, companies are getting involved in strategic developments to prevent them. Key technology providers and mobile banking solution companies are partnering to implement a cloud-based AML solution to monitor cross-border payments and prevent financial crimes and money laundering on payment platforms.


Anti-Money Laundering Solutions Market Trends

The Know Your Customer (KYC) Systems Segment is Expected to Witness Major Growth


- Identification and verification of customers or knowing your customer (KYC) process is a vital part of financial institutions' anti-money laundering (AML) activities, the development of which has been on the rise for the past decade. The KYC process is also a part of banking operations for financial institutions' customers. The functionality of the KYC process significantly impacts customer satisfaction, further increasing its importance.
- Corporate and institutional clients have complicated ownership arrangements, different business lines, and subsidiaries within large banking institutions. To increase data accuracy and eliminate redundancy, it becomes essential for them to share clients' KYC information across the bank. Thus, banks increasingly embrace technology and automated KYC solutions to enhance operational efficiency. For instance, in order to leverage Fenergo's CLM and KYC technologies across the group, BNP Paribas Bank developed a global KYC service called One KYC. This resulted in the creation of a repository for standardized, reliable, and fully know your customer data and documents that could be shared with all its business clients across the group.
- As monitoring customer activities becomes necessary for financial institutions, the need for KYC verification has increased rapidly during the last decade. Thus, adopting advanced solutions such as scan-based digital identity verification (IDV) solutions as a part of KYC tools has become a new trend in the market, as it helps in real-time identification, assuring sufficient KYC processes and avoiding possible fraud activities.
- The demand for KYC systems is growing due to increased focus on regulatory compliance to prevent money laundering, fraud, and terrorist financing. The government and financial institutions are enforcing stringent KYC regulations to ensure transparency and accountability.
- According to the Reserve Bank of India, in FY2023, more than 13 thousand bank fraud cases were recorded across India. This was an increase compared to the previous year by about 48% and turned around the trend of the last decade.


Asia-Pacific is Expected to Witness Significant Growth


- China is anticipated to register significant growth in the anti-money laundering solutions market during the projected period due to innovations by the regional players and initiatives taken by the government to heighten the security of the regional financial landscape.
- Transaction monitoring solutions are expected to create considerable demand in Japan in the coming years as the volume of financial transactions continues to increase. Further, the government's cryptocurrency-related initiatives are likely to boost growth.
- Various financial institutions, banks, and other organizations are implementing AML solutions in response to rising anti-money laundering cases in India. For instance, recently, IDBI Intech Ltd, (Intech) a technology solutions provider to the BFSI verticals, implemented an i-AML (Anti Money Laundering) solution at one of the key insurance players of India, the Life Insurance Corporation of India (LIC). This solution provides an enterprise-wide view of risk and compliance at the transactions and customer level, harnessing advanced analytics, workflow, and artificial intelligence with a comprehensive set of pre-built rules and scenarios.
- With the rising awareness of financial crimes among businesses and the responsibility of financial institutions to be vigilant against financial frauds, the regulations imposed by the governments of countries covered under Southeast Asia are expected to further drive the market studied.
- The anti-money laundering solutions market is observing substantial growth due to the rising need for financial institutions and businesses to comply with regulations and combat money laundering activities. The market was being driven by technological advancements, the rise in financial crimes, and stricter regulatory frameworks globally.


Anti-Money Laundering Solutions Industry Overview

The anti money laundering solutions market is fragmented, with the presence of major players like SAS Institute Inc., NICE Actimize (Nice Ltd), Experian Information Solutions Inc. (Experian Ltd), Symphony Innovation LLC, and Fair Isaac Corporation (FICO). Players in the market are adopting strategies, such as partnerships and acquisitions, to enhance their product offerings and gain sustainable competitive advantage.


- July 2023: Profile, a financial solutions provider, extended the term of its contract with Allica Bank, which has been based on a strong relationship and fruitful collaboration between the two parties. Allica Bank recently exceeded ~USD 2.53 billion in deposits alongside more than ~USD 1.26 billion in lending on the platform, becoming one of the major UK fintechs to achieve profitability in 2022.
- June 2023: Google Cloud launched its anti-money laundering AI (AML AI), an artificial intelligence (AI)-powered product to help global financial institutions detect money laundering. Google Cloud's AML AI provides a consolidated machine learning (ML)-generated customer risk score. The product can deliver accurate results, which increases overall program effectiveness and improves operational efficiency.


Additional Benefits:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support