Europe Anti-Money Laundering Software Market, By Offering (Solution and Services), Function (Compliance Management, Currency Transaction Reporting, Customer Identity Management, Transaction Monitoring, and Others), Deployment Mode (Cloud and On-Premises), Enterprise Size (Large Enterprises, Small & Medium Enterprises), Gambling Type (Lottery, Sports Betting, Bingo, Raffles/Pools, and Casino), Application (Offline/Land Based and Live Entertainment/Online), Gambling Entity (Organizations, Sole Trader/Partnership, and Others) Industry Trends and Forecast to 2029
Market Analysis and Insights
Customer data are filtered by anti-laundering systems, classified according to a level of suspicion, and inspected for anomalies. Anti-money laundering refers to a set of laws, legislation, and procedures to prevent criminals from disguising illicit funds as legitimate income. While anti-money laundering (A.M.L.) laws cover a relatively limited range of transactions and criminal behaviors, they have far-reaching implications. Also, A.M.L. enforcement officers are appointed to supervise anti-money laundering policies and ensure compliance by banks and other financial institutions. Thus, the Increasing stringent regulations and compliance related to aml is increasing the demand for anti-money laundering software in the market. However, high device compatibility issues of aml software to hamper the growth of the market.
Data Bridge Market Research analyses that the anti-money laundering software market will grow at a CAGR of 14.7% from 2022 to 2029.
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Report Metric
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Details
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Forecast Period
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2022 to 2029
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Base Year
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2021
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Historic Year
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2020 (Customizable to 2019 - 2014)
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Quantitative Units
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Revenue in USD Million
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Segments Covered
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By Offering (Solution and Services), Function (Compliance Management, Currency Transaction Reporting, Customer Identity Management, Transaction Monitoring, and Others), Deployment Mode (Cloud and On-Premises), Enterprise Size (Large Enterprises, Small & Medium Enterprises), Gambling Type (Lottery, Sports Betting, Bingo, Raffles/Pools, and Casino), Application (Offline/Land Based and Live Entertainment/Online), Gambling Entity (Organizations, Sole Trader/Partnership, and Others)
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Countries Covered
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U.K., Germany, France, Italy, Spain, Russia, Netherlands, Switzerland, Turkey, Belgium , Ireland , Austria , Czechia , Hungary, Slovakia and Rest of Europe
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Market Players Covered
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Microsoft, Intel Corporation, Fiserv, Inc., B.A.E. Systems., Wolters Kluwer N.V., Experian Information Solutions, Inc., S.A.S. Institute Inc., I.B.M., Temenos, Comarch SA., Open Text Corporation, FICO, A.C.I. Worldwide., NICE, Acuant, Inc., Featurespace Limited., Protiviti Inc., Actico GmbH , Caseware International Inc., Sanction Scanner
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Market Definition
Anti-money Laundering (A.M.L.) solutions are used to detect and warn the institutions regarding money laundering, terrorist financing, fraud, electronic crime, bribery and corruption, tax evasion, embezzlement, information security, illegal cross border transactions, among others that hugely impact the economy of the country and can hamper its reputation. A.M.L. is a term generally used to depict the fight against money laundering & financial crimes. Anti-money Laundering (A.M.L.) solutions comply with various policies, laws, and regulations that help prevent financial crimes. Global and local regulators set these guidelines, policies, and laws present worldwide, which aims to strengthen the functioning of A.M.L. solutions.
Anti-Money Laundering Software Market Dynamics
Drivers
- Increase in use of seon software
Money laundering is the process of converting illegal money into a legal form. The purpose of criminals laundering money is to earn revenue. Money laundering has become a significant financial problem and crime today. Every year billions of dollars are illegally smuggled to international borders through various modes. Money Laundering has become a critical financial issue that financial authorities are trying to stop.
- Increase in stringent regulations and compliance related to AML
An anti-money laundering compliance program is a set of regulations or rules that a financial institution must follow to prevent and detect money laundering and terrorist funding activities. In recent times, the financial crime against financial institutions such as banks and credit unions have significantly increased. There was a ~50- 60% increment in financial fraud cases in 2019 from 2018 and it is expected to grow in coming years. The losses incurred by the banks across Europe is quite significant.
- Growth in demand for AML software
Financial institution such as central banks, retail and commercial banks, internet banks, credit unions, savings and loans associations, investment banks among others are compelled by government law to tackle various issues such as money laundering, terrorist funding activities among others by using regulation which are designed to strengthen the A.M.L. solution. Institutions such as the financial action task force, European Union – fifth anti-money laundering directives are laid regulatory guidelines. Anti-Money Laundering (A.M.L.) technologies can also be used for I.D. verification and A.M.L. solution is easier and more accurate than manual processes for I.D. verification. The A.M.L. solutions offer I.D. verification in financial institution using KYC verification. KYC is more specific towards the verification of customer identities before permitting a transaction. Thereby, it helps to validate the identity and is one of the criteria used by A.M.L. solutions.
- Growth in demand for transaction monitoring systems in the information technology (I.T.) sector
Transaction monitoring has become essential to anti-money laundering (A.M.L.) systems. All financial institutions should have transaction monitoring systems to keep an eye out for any suspicious transactions and financial crimes from customers. Transaction monitoring includes assessing of historical/current customer information to provide a complete picture of customer activity. This can include transfers, deposits, and withdrawals. Most information technology (I.T.) firms will use software tool automatically. It is very difficult to monitor these acquired data as it is a challenging task to do manually. Therefore, many I.T. companies have adopted automated systems such as anti-money laundering systems.
Opportunity
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Increase in adoption of advanced analytics in aml
Advanced analytics is the autonomous or semi-autonomous system that analyze data or content using sophisticated techniques and tools which is quite different from the traditional business intelligence. These analytics give data which the system predicts and generates a deeper analysis using which the system predicts and generates recommendations. Advanced analytics in A.M.L. solutions can play a vital role in detecting money laundering, economic crimes, identity theft, and cross-border transactions.
Restraint/Challenge
- Change in regulation framework and guidelines for aml solution
A.M.L. compliance practices concentrate on setting the policies and norms that prevent potential violators from engaging in money laundering fraud and financial crime. In this way, criminals cannot hide money's illicit origin in any transaction.
COVID-19 Impact on Anti-Money Laundering Software Market
The confinement and lockdown period during the Covid-19 crisis has shown the importance of good, reliable internet connectivity at home. A high-speed connection at home has opened up the possibility of efficient teleworking, maintaining entertainment habits and keeping close contacts. Data traffic in all networks has increased significantly during the pandemic period. COVID-19 has increased the demand of anti-money laundering in the market. Fixed broadband networks have gained immense popularity for keeping the world connected. Traffic grew 30-40% overnight, driven primarily by working from home (video conferencing and collaboration, VPNs), learning from home (video conferencing and collaboration, e-learning platforms), and entertainment (online gaming, video streaming, social media). Moreover, limited supply and shortage of software have significantly affected anti-money laundering in the market. The flow of new equipment, such as computers, servers, switches, and customer premise equipment (C.P.E.) has either entirely stopped or is delayed, with lead times of up to 12 months for different items.
Manufacturers are making various strategic decisions to bounce back post-COVID-19. The players are conducting multiple research and development activities to improve the technology involved in the anti-money laundering software. With this, the companies will bring advanced anti-money laundering to the market.
For instance,
- In June 2021, Microsoft partnered with Morgan Stanley to strengthen the financial services industry. The key feature of this partnership was digital transformation, designing new applications, and enhancing the employee and developer experience in the financial services industry. With this partnership, both the companies amid to strengthen its cloud-based financial services industry by offering innovative solutions for consumer.
Thus, the COVID-19 has increased the demand of anti-money laundering in the market but limited supply and shortage of software has significantly affected anti-money laundering process in the market.
Recent Developments
- In April 2022, Experian Information Solutions, Inc. launched a new fraud prevention solution. The key feature of this solution was to strengthen the customer identity verification by strengthening requirements such as anti-fraud measures, Know Your Customer (KYC) and Anti-money Laundering (A.M.L.). The company benefited from this solution as it helped to create a seamless on-boarding process and made the authentication process of a person easy for many businesses.
- In February 2021, NICE Systems Ltd launched an AI-powered screening solution for improving risk management capabilities. The key feature of this solution was real-time and batch screening capabilities, seamless access, use of fuzzy matching technologies, facial biometrics, and ongoing monitoring for A.M.L. value chain. This solution helps the company to offer superior data management, advanced screening capabilities and customer satisfaction.
Europe Anti-Money Laundering Software Market Scope
The anti-money laundering software market is segmented by offering, function, deployment mode, enterprise size, gambling type, application, and gambling entity. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
By Offering
- Solution
- Services
On the basis of offering, the Europe anti-money laundering software market is segmented into solution and services.
Function
- Compliance Management
- Currency Transaction Reporting
- Customer Identity Management
- Transaction Monitoring
- Others
On the basis of function, the Europe anti-money laundering software market has been segmented into compliance management, currency transaction reporting, customer identity management, transaction monitoring and others.
Deployment Mode
- Cloud
- On-Premises
On the basis of deployment mode, the Europe anti-money laundering software market has been segmented into cloud and on-premises.
Enterprise Size
- Large Enterprises
- Small & Medium Enterprises
On the basis of enterprise size, the Europe anti-money laundering software market has been segmented into large enterprises, small & medium enterprises.
Gambling Type
- Lottery
- Sports Betting
- Bingo
- Raffles/Pools
- Casino
On the basis of gambling type, the Europe anti-money laundering software market has been segmented into lottery, sports betting, bingo, raffles/pools and casino.
Application
- Offline/Land Based Medium
- Live Entertainment/Online
On the basis of application, the Europe anti-money laundering software market has been segmented into to offline/land based medium and live entertainment/online.
Gambling Entity
- Organizations
- Sole Trader/Partnership
- Others
On the basis of gambling entity, the Europe anti-money laundering software market has been segmented into organizations, sole trader/partnership and others.
Europe Anti-Money Laundering Software Market
The anti-money laundering software market is analyzed, and market size insights and trends are provided by the offering, function, deployment mode, enterprise size, gambling type, application, gambling entity and countries as referenced above.
Europe anti-money laundering software market is covers countries such as U.K., Germany, France, Italy, Spain, Russia, Netherlands, Switzerland, Turkey, Belgium , Ireland , Austria , Czechia , Hungary, Slovakia and Rest of Europe.
U.K. is expected to dominate the Europe anti-money laundering software market as the country is witnessing increasing government's support for "KYC/CDD and Watchlist" networks, Money laundering is a type of financial crime. It involves taking criminally obtained proceeds (dirty money) and disguising their origins so they'll appear to be from a legitimate source. Anti-money laundering (A.M.L.) refers to the activities financial institutions perform to comply with legal requirements to monitor for actively and report suspicious activities and the growth of the country in the Europe anti-money laundering software market.
The country section of the anti-money laundering software market report also provides individual market impacting factors and domestic regulation changes that impact the market's current and future trends. Data points such as new sales, replacement sales, country demographics, disease epidemiology and import-export tariffs are some of the significant pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands and the impact of sales channels are considered while providing forecast analysis of the country data.
Competitive Landscape and Anti-Money Laundering Software Market Share Analysis
The anti-money laundering software market competitive landscape provides details of the competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, solution launch, product width and breadth, application dominance. The above data points are only related to the companies' focus on the anti-money laundering software market.
Some of the major players operating in the Europe anti-money laundering software market are Microsoft, Intel Corporation, Fiserv, Inc., B.A.E. Systems., Wolters Kluwer N.V., Experian Information Solutions, Inc., S.A.S. Institute Inc., I.B.M., Temenos, Comarch SA., Open Text Corporation, FICO, A.C.I. Worldwide., NICE, Acuant, Inc., Featurespace Limited., Protiviti Inc., Actico GmbH , Caseware International Inc., Sanction Scanner among others.
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