MARKET OVERVIEW- EUROPE ANTI-MONEY LAUNDERING MARKET
Money laundering describes a range of practices used to disguise the source of illicit profits and integrate them into the legitimate economy. 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, technological innovations coupled with key initiatives implemented by several governments to enhance the security of financial transactions are key factors driving the growth of the market in the region. Furthermore, a holistic view of data to curb financial crimes and 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 Europe region. Germany's federal anti-money laundering unit registered a record 114,914 suspected cases of money laundering and financing terrorism in 2020. According to research by Credas Technologies, a specialist in ID verification software, an estimated £88bn is laundered each year in the U.K. Based on data from the OECD, its figures indicate that only the US (£217bn) is home to more money-laundering. The UK’s figure is well above that of France (£55bn) and Germany (£51bn). According to Statistica, between 2012 and 2019, the number of reports of suspected money laundering in Italy increased to a significant extent. In 2012, the cases amounted to nearly 66.9 thousand, whereas in 2020, the number of suspected financial operations added up to over 112 thousand. According to the data, the Northern Italian province of Pavia ranked first for money laundering in Italy, with 14.1 cases per 100,000 inhabitants. The province of Modena followed, with 11.7 reports every 100,000 population. Thus, rise in cases of money laundering is a major factor which is anticipated to drive the growth of the market. Also, several companies across various countries 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 across various countries are focusing on enacting stringent regulations and compliances for AML. For instance, in 2020, the Fifth Money-Laundering Directive was transposed into French law. It sets out a series of measures to fight against terrorist financing more effectively and guarantee improved transparency of financial transactions. Such stringent regulations and compliances for AML are expected to fuel the market’s growth over the estimated time period. 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 its ability of early detection of frauds. This is a major factor which 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 challenge the growth of the market. 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 Europe 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
EUROPE ANTI-MONEY LAUNDERING MARKET SEGMENTAL OVERVIEW
Europe Anti-Money Laundering market comprises of different market segments like component, organization size, deployment type, vertical and country
EUROPE ANTI-MONEY LAUNDERING MARKET BY COMPONENT
On the basis of component, the Europe 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, the 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.
EUROPE ANTI-MONEY LAUNDERING MARKET BY ORGANIZATION SIZE
On the organization size, the Europe 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.
EUROPE ANTI-MONEY LAUNDERING MARKET BY DEPLOYMENT TYPE
By deployment type, the Europe 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 to protect them from severe malicious threats.
Also, the cloud segment is expected to witness high growth over the projected time period. Cost-effectiveness provided by cloud-based AML software is a key factor driving the growth of the segment.
EUROPE ANTI-MONEY LAUNDERING MARKET BY VERTICAL
The Europe 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 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.
EUROPE ANTI-MONEY LAUNDERING MARKET BY COUNTRY
The Europe Anti-Money Laundering market is studied for the following countries:
- Germany
- U.K
- France
- Italy
- Spain
- Rest of Europe
The U.K is expected to dominate the market over the forecast period. The rise in money laundering cases and an increase in the focus of financial institutions on digital payment related issues are key factors driving the growth of the market in the region. The research from Credas has found that the UK ranks second in global money laundering by amount. The study found that approximately GBP 88 billion is laundered every year in the UK. Around the world, it is estimated that 3% of the global GDP is laundered every year. For the United Kingdom, the annual laundered amount equals around 4.3% of the country’s GDP.
Germany is expected to witness high growth over the forecast period. An increase in money laundering cases and key initiatives implemented by the government to enhance the security of financial transactions are key factors driving the growth of the market in the country. For instance, according to the German Financial Intelligence Unit, the cases of terrorist financing and money laundering increased by 50% in 2019, of which, the real estate sector accounted for 15 to 30% of cases.
COVID-19 IMPACT ANALYSIS ON THE EUROPE ANTI-MONEY LAUNDERING MARKET
Axiom MRC provides a 360-degree analysis of micro and macro-economic factors with regard to the Europe 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 Europe Anti-Money Laundering market, expenditure, and economic and international policies on the supply and demand side. The report also studies the impact of pandemic on the European economies, international trade, business investments, GDP, and marketing strategies of key players present in the market.
The COVID-19 pandemic has affected severely vulnerable groups, including older people with disabilities, ethnic minorities and those living in deprived areas. COVID-19 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 Europe Anti-Money Laundering market is majorly focused on expanding the growth of anti-money laundering industry in Europe region with new product innovation, business expansion, and the increasing presence of a range of manufacturers operating in 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:
April 2022: NICE partnered with Deutsche Telekom Global Business, a subsidiary of Deutsche Telekom that provides telecommunications and connectivity services to businesses of all kinds, including the government. Deutsche Telekom Global Business is now delivering digital and agent-assisted CX solutions across Europe as part of the partnership.
January 2022: PassFort, a global provider of software-as-a-service regulatory technology solutions, announced a partnership with Trulioo. With the collaboration, Trulioo will provide regulated enterprises a method to digitally change Know Your Customer (KYC) and Know Your Business (KYB) procedures.
