GVR Report cover Anti-money Laundering Market Size, Share & Trends Report

Anti-money Laundering Market Size, Share & Trends Analysis Report By Component (Software, Services), By Product Type, By Deployment, By End-use, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Feb, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-3-68038-449-9
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 150

Report Overview

The global anti-money laundering market size was valued at USD 1.03 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 15.6% from 2021 to 2028. The promising growth prospects of the market can be attributed to the rise in money laundering instances across the globe. Companies use anti-money laundering software to detect suspicious transactions and customer data. Compliance professionals also use the software to comply with corporate policies and government regulations such as the Bank Secrecy Act of the U.S. aimed to prevent money laundering-related crimes. An anti-money laundering software uses data gathered from multiple solutions used to manage financial transactions, such as accounting software and ERP systems for reducing money laundering activities.

U.S. anti-money laundering market size, by deployment, 2016 - 2028 (USD Million)

Anti-money laundering solutions deliver users high performance in visualizing, monitoring, and resolving money laundering incidents. The benefits of anti-money laundering solutions include robust data analysis, improved risk protection, faster processing, and improved efficiency in resolving these cases.

Various government bodies across the world have enacted regulations and laws to counterterrorism funding and combat money laundering incidents. The Financial Action Task Force, an inter-government body, helps countries update and develop laws to combat money laundering. Anti-money laundering laws differ across countries, making it crucial for financial institutes to ensure that their business is compliant with the policies specific to the country of operation.  These policies help financial organizations design a framework of processes to be followed to prevent illicit funds from entering into their financial systems.

Financial institutions are expected to comply with certain rules, framed by government bodies worldwide, considered critical in mitigating money laundering instances. For instance, the Bank Secrecy Act of the U.S. requires banks to develop an effective compliance program as well as establish customer due diligence programs and systems. Additionally, banks are also expected to establish an effective ‘suspicious activity reporting and monitoring’ process to screen against the Office of Foreign Assets Control sanctions.

The COVID 19 pandemic has positively impacted market growth due to a steep rise in online sales coupled with the increasing use of online payment solutions. The rise in non-cash payments via internet payments, prepaid cards, and mobile payments has created new gateways for money laundering in recent days. The high speed at which transactions can be executed, coupled with minimal face-to-face interaction between the person initiating the transaction and the service provider, has increased the vulnerability of these relatively new payment methods to money laundering activities.

This creates the need for financial services institutions to strictly monitor all their transactions to mitigate money laundering activities and avoid the penalties framed by regulatory bodies. According to the statistics provided by the Tookitaki Holding Pte. Ltd., a software company, in 2019, USD 6.2 billion anti-money laundering related penalties were paid by banks globally. These penalties were mainly imposed by the regulators of countries such as Hong Kong, India, France, Belgium, and the Netherlands. 

Component Insights

The software segment dominated the market in 2020 and accounted for more than 60% share of the global revenue. Anti-money laundering software helps organizations ensure that the legal requirements framed by government bodies are met. Additionally, the software plays a vital role in preventing and detecting financial crimes. An anti-money laundering software is also capable of speeding up the customer onboarding process.

The services segment is anticipated to register the highest growth over the forecast period. Anti-money laundering services include risk rating methodology consulting, advice regarding a range of regulatory issues, system optimizing and tuning, risk assessment, and training. Training is provided to employees to make them understand the various anti-money laundering laws applicable across various industries.

Product Type Insights

The transaction monitoring segment dominated the market in 2020 and accounted for more than a 30% share of the global revenue. Anti-money transaction monitoring software enables financial institutes to conduct customer transactions on a real-time basis. Transaction monitoring software solutions also provide benefits such as increased automation, ease in identifying suspicious behavior, and increased effectiveness, which drive the demand for the segment. A range of products available in the market include features such as blacklist screening, customer profiling, and sanctions screening.

The customer identity management segment is expected to register the highest growth over the forecast period. Customer identity management solutions prevent banks from being used by criminal elements for money laundering. These solutions also help financial institutions understand their customer's financial dealings to manage the risk prudently and serve them better. The increased realization that the proper identification and verification of customer identity can help reduce the risk of money laundering is expected to drive the demand for the segment in the near future.

Deployment Insights

The on-premise segment dominated the market in 2020 and accounted for more than 50.0% share of the global revenue. The on-premise deployment of anti-money laundering solutions provides organizations full control over applications, platforms, data, and systems, which can be easy managed by the organization's in-house IT staff. At the same time, in the organizations where user credentials are critical for business operations, the demand for the segment is high. The organizations use on-premise anti-money laundering to keep them protected from malicious threats.

The cloud segment is anticipated to register the highest growth over the forecast period. The cloud-based deployment of anti-money laundering solutions helps organizations in reducing the cost of establishing the required IT infrastructure. Moreover, other benefits of cloud-based deployment, including flexibility and a steady improvement in security features, are expected to drive the adoption of cloud solutions in the near future. The use of security features such as multi-factor authentication to access stored data grants cloud computing additional security from the risk of laundering.

End-use Insights

The BFSI segment dominated the market in 2020 and accounted for more than 33% share of the global revenue. The BFSI segment includes retail banking, commercial banking, digital banking, wealth management institutes, among others. Banks are facing a continuously increasing risk of fraud and financial crimes stemming from digitization and automation of financial systems and a significant increase in online transactions. Anti-money laundering regulations define measures that banks must take into consideration to prevent and detect financial crimes, which creates the demand for anti-money laundering solutions across the BFSI segment.

Europe anti-money laundering market share, by end-use, 2020 (%)

The IT and telecom segment is anticipated to register significant growth over the forecast period. The increased focus on anti-money laundering compliance by IT organizations is expected to drive market growth. IT companies across the world are adopting risk management approaches to reduce fraudulent transactions. The reduction in fraudulent transactions, in turn, is helping companies provide secured and enhanced services to their clients.

Regional Insights

The North American regional market dominated the anti-money laundering market in 2020 and accounted for over 46% share of global revenue. The growth can be attributed to the presence of major market players in the region. The presence of a large number of banks is also expected to drive the adoption of anti-money laundering solutions in the region in the near future. Simultaneously, the proliferation of inorganic strategies among the anti-money laundering vendors to implement artificial intelligence is expected to drive market growth.

Europe is expected to emerge as the fastest-growing regional market over the forecast period. Continuous enhancements in regulatory norms governing the BFSA sector in Europe is expected to drive market growth. The trade-based money laundering norms implemented in Europe include the General Data Protection Regulation, Payment Card Industry Data Security Standard, and AMLD5 the 5th Money Laundering Directive. At the same time, a steep increase in money laundering activities and financial frauds is driving the need for anti-money laundering solutions in the region.

Key Companies & Market Share Insights

The competitive landscape of the market is highly fragmented in nature. Market players are focused on strategies such as partnerships, joint ventures, product innovation, research & development, and geographical expansion to strengthen their market positions. Businesses are focusing on providing on-premise software solutions to enterprises due to security-related benefits. The on-premise anti-laundering solutions help enterprises enhance their security level and thereby enhance the level of customer satisfaction.

Market players are focused on enhancing their product offerings to better cater to the changing needs of users and stay competitive. For instance, in January 2019, NICE Actimize launched IFM-X, an integrated fraud management platform that leverages machine learning and automation technologies to optimize proficiency while reducing the entire cost of implementing and operating a risk management system. In May 2019, Tata Consultancy Services Limited launched TCS BaNCS for Payments solution in Canada, which supports real-time payment processing. The new solution is expected to encourage financial institutions and banks to speed up the adoption of modernization initiatives by Payments Canada. Some of the prominent players operating in the anti-money laundering market are:

  • NICE Actimize

  • Tata Consultancy Services Limited

  • Trulioo

  • Cognizant Technology Solutions Corporation

  • ACI Worldwide, Inc.

  • SAS Institute Inc.

  • Fiserv, Inc.

  • Oracle Corporation

  • BAE Systems

  • Accenture

Anti-money Laundering Market Report Scope

Report Attribute


Market size value in 2021

USD 1.16 billion

Revenue forecast in 2028

USD 3.19 billion

Growth Rate

CAGR of 15.6% from 2021 to 2028

Base year of estimation


Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Component, product type, deployment, end-use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; Germany; U.K.; China; India; Japan; Brazil; Mexico

Key companies profiled

NICE Actimize; Tata Consultancy Services Limited; Trulioo; Cognizant Technology Solutions Corporation; ACI Worldwide, Inc.; SAS Institute Inc.; Fiserv, Inc.; Oracle Corporation; BAE Systems; Accenture

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

Segments Covered in the Report

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the global anti-money laundering market report based on component, product type, deployment, end-use, and region:

  • Component Outlook (Revenue, USD Million, 2016 - 2028)

    • Software

    • Services

  • Product Type Outlook (Revenue, USD Million, 2016 - 2028)

    • Compliance Management

    • Currency Transaction Reporting

    • Customer Identity Management

    • Transaction Monitoring

  • Deployment Outlook (Revenue, USD Million, 2016 - 2028)

    • Cloud

    • On-premise

  • End-use Outlook (Revenue, USD Million, 2016 - 2028)

    • BFSI

    • Government

    • Healthcare

    • IT & Telecom

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

Frequently Asked Questions About This Report

gvr icn


gvr icn

This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself...

gvr icn


We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.

Contact us now to get our best pricing.

BBB icon D&B icon

We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure.