The anti-money laundering market has been forecast to increase at a compound annual growth rate (CAGR) of 11.3% through to 2016, driven by the increase in regulatory compliance requirements and an increasing focus on product enhancements among vendors.
Anti-money laundering (AML) is a term mainly used in the financial and legal industries to describe the legal controls that require financial institutions and other regulated entities to prevent, detect and report money laundering activities.
Anti-money laundering guidelines came into prominence globally as a result of the formation of the Financial Action Task Force (FATF) and the promulgation of an international framework of anti-money laundering standards.
These standards began to have more relevance in 2000 and 2001 after FATF began a process to publicly identify countries that were deficient in their anti-money laundering laws and international cooperation, a process colloquially known as "name and shame".
An effective AML program requires a jurisdiction to have criminalised money laundering, given the relevant regulators and police the powers and tools to investigate; be able to share information with other countries as appropriate; and require financial institutions to identify their customers, establish risk-based controls, keep records, and report suspicious activities.
The anti-money laundering market is witnessing a trend where many AML software vendors are focusing on enhancing their product features. Many vendors, which earlier offered single-purpose applications such as transaction monitoring or compliance reporting, are adding various other modules including KYC, entity resolution, case management and reporting, investigation tools, and customer due diligence checks to provide end-to-end AML compliance functionality.
In addition, many vendors are developing sophisticated capabilities such as network analysis and historical profiling, and advanced analytics such as Bayesian learning and neutral networks.
Key players currently providing software for the anti-money laundering market include Actimize Inc., Fiserv Inc., Norkom Technologies Ltd., and SAS Institute Inc.
For more information on the anti-money laundering market, see the latest research: Anti-Money Laundering Market
Follow us on Twitter @CandMResearch