MARKET OVERVIEW- UNITED STATES ANTI-MONEY LAUNDERING MARKET
Anti-money laundering (AML) refers to a set of procedures, laws and regulations designed to stop criminals from generating income through illegal actions. An increase in cases of money laundering, presence of a large number of early adopters and a presence of major market players are key factors driving the growth of the market in the region. Also, the implementation of AI, ML in AML solutions, as well as the growing demand for cloud-based AML solutions, is likely to fuel the growth of the market in the region. Also, several companies are focussing on integrating technologies, such as AI, ML, and automation. This is expected to further fuel the growth of the market in the region. Furthermore, technological advancements in the BFSI sector are anticipated to provide lucrative growth opportunities for key players operating in the market.
MARKET DRIVERS
The growth of the market is driven by rise in cases of money laundering in the United States region. According to UNODC, two to five per cent of the global GDP is laundered every year, which that is equivalent to approximately USD 800 billion to USD two trillion. The United States makes up at least $300 billion of that figure, meaning that the U.S. is responsible for 15%-38% of the money laundered annually. According to the U.S Treasury Department, as much as $300 billion in illicit funds make their way through the U.S. financial system in a given year. Thus, the rise in cases of money laundering is a major factor that is anticipated to drive the growth of the, market. Also, several companies are focusing on launching technologically advanced AML solutions. This is expected to further fuel the market growth over the estimated time period.
MARKET OPPORTUNITIES
Several governments as well as private organizations are focussing on enacting stringent regulations and compliances for AML. For instance, Bank of America has implemented an enterprise-wide Anti-Money Laundering (AML) compliance program, that covers all of its subsidiaries and affiliates, and is reasonably designed to comply with applicable laws and regulations. Such stringent regulations and compliances for AML are expected to fuel the market’s growth over the estimated time period. Also, the Anti-money Laundering Act of 2020 enacted by the U.S. Congress places a variety of anti-money laundering obligations for financial institutions, driving the adoption of anti-money laundering solutions in the U.S. Also, the implementation of key initiatives to promote awareness regarding money laundering is expected to contribute to the growth of the market.
MARKET RESTRAINTS
The complexities involved in AML solutions are limiting the ability of early detection of frauds. This is a major factor that is expected to have a negative impact on the growth of the market.
MARKET GROWTH CHALLENGES
The high cost involved in the deployment of anti-money laundering solutions is expected to pose as a key challenge for the growth. Also, the lack of investments in secure payment systems among the underdeveloped nations is expected to act as a major challenge for the growth of the market.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the United States Anti-Money Laundering market including, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. An increase in cases of money laundering worldwide has led to a rise in demand for anti-money laundering solutions, and therefore, the market is expected to witness growth at a specific CAGR from 2023-2029.
UNITED STATES ANTI-MONEY LAUNDERING MARKET SEGMENTAL OVERVIEW
United States Anti-Money Laundering market comprises of different market segments like component, organization size, deployment type and vertical.
UNITED STATES ANTI-MONEY LAUNDERING MARKET BY COMPONENT
On the basis of component, the United States Anti-Money Laundering market consists of key segments like
The software segment is expected to gain the most market share over the forecast period. AML software helps companies fight financial crime through transaction monitoring to identify any suspicious activity, such as terrorist financing and money laundering activities. In addition, it ensures that companies follow anti-money laundering compliance and legal requirements when working with customers and partners to avoid doing business with money laundering entities.
Also, services segment is expected to register high growth over the forecast period. AML services help prevent a wide variety of money laundering and sanctions related risks for financial institutions.
UNITED STATES ANTI-MONEY LAUNDERING MARKET BY ORGANIZATION SIZE
On the organization size, the United States Anti-Money Laundering market consists of key segments like
- Small and Medium-Sized Enterprises
- Large Enterprises
Large enterprises, followed by small and medium-sized enterprises segment is expected to hold a large share in the market. Large enterprises were the first to implement AML solutions as they use many business applications that are vulnerable to fraudulent attacks. Large companies with different types of IT infrastructures face the challenge of effectively managing the security of their applications.
UNITED STATES ANTI-MONEY LAUNDERING MARKET BY DEPLOYMENT TYPE
By deployment type, the United States Anti-Money Laundering market includes segments like
The on-premise segment is expected to lead the market over the forecast period. On-premises solutions provides organizations complete control over the platforms, applications, systems and data that IT staff can manage. Many organizations use on-premise anti-money laundering solutions to protect them from severe malicious threats.
Also, the cloud segment is expected to witness high growth over the forecast period. Cost-effectiveness provided by cloud-based AML software is a key factor driving the growth of the segment.
UNITED STATES ANTI-MONEY LAUNDERING MARKET BY VERTICAL
The United States Anti-Money Laundering market finds key applications across different verticals like
- Banking and financial
- Insurance providers
- Gaming and gambling
- Others
The banking and financial sector is expected to dominate the market over the forecast period. The rise in regulatory measures that banks must be consider to prevent and detect financial crime, is expected to stimulate the demand for anti-money laundering solutions.
The insurance providers sector is expected to witness high growth over the forecast period. The rise in focus on preventing money laundering frauds by insurance providers is expected to drive the growth of the segment.
COVID-19 IMPACT ANALYSIS ON THE UNITED STATES ANTI-MONEY LAUNDERING MARKET
Axiom MRC provides a 360-degree analysis of micro and macro-economic factors with regard to the United States Anti-Money Laundering market. The report involves an exclusive study on COVID-19 impact analysis. In addition, the report also includes a complete analysis of changes in the United States Anti-Money Laundering market, expenditure, and economic and international policies on the supply and demand side. The report also studies the impact of the pandemic on the United States economy, international trade, business investments, GDP, and marketing strategies of key players present in the market.
The outbreak of the COVID-19 virus has become a global healthcare emergency, where the impact of COVID-19 has significantly affected the health, economy, and society. It has changed the global economic situation. The pandemic has positively impacted the growth of the market due to a rise in online sales and the increasing use of online payment solutions. The use of digital wallets or e-wallets has also increased. Due to this change, the chances of illegal money transactions have also increased. FATF has warned banks about illegal cash transactions. Because of this, the demand for anti-money laundering solutions has increased. This is expected to drive the demand for anti-money laundering solutions in the upcoming years.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the United States Anti-Money Laundering market is primarily focused on expanding the growth of the anti-money laundering industry in the United States with new product innovation, business expansion, and the increasing presence of a range of manufacturers operating in the anti-money laundering sector has led to the growing demand for the market. Besides, the market offers a range of products in different applications to fulfil the requirements of consumers, which further contributes to healthy growth in the market.
The key players studied in the market are
- BAE Systems (UK)
- Nice Actimize (US)
- FICO (US)
- SAS Institute (US)
- Oracle Corporation (US)
- Experian (Ireland)
- LexisNexis Risk Solution (US)
- Fiserv (US)
- FIS (US)
- Dixtior (Portugal)
- TransUnion (US)
- Wolter’s Kluwer (Netherlands)
- Temenos (Switzerland)
- Nelito Systems (India)
- TCS (India)
- Workfusion (US)
- Napier (UK)
- Quantaverse (US)
- Complyadvantage (UK)
- Acuant (US)
- FeatureSpace (UK)
RECENT DEVELOPMENT:
July 2020: Experian Information Solutions, Inc. entered into a partnership with the Global Data Consortium. The key feature of this partnership was to strengthen customer identity verification by strengthening requirements such as anti-fraud measures, Know Your Customer (KYC), and Anti-Money Laundering (AML). Both companies benefited from this partnership as it enabled them to create a seamless onboarding process and made authenticating a person's identity easy for many businesses.
January 2019: NICE Actimize launched IFM-X, an integrated fraud management platform that uses machine learning and automation technologies to optimize proficiency while reducing the entire cost of implementing and operating a risk management system.
