Rising Adoption of Cryptocurrency to Provide Anti-Money Laundering Software Market Growth Opportunities during 2022–2028
According to our latest market study on “Anti-Money Laundering Software Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Component, Deployment, Product, and End User,” the anti-money laundering software market size is expected to grow from US$ 2,116.3 million in 2021 to US$ 6,162.8 million by 2028; The anti-money laundering software market share is estimated to grow at a CAGR of 16.6% from 2022 to 2028.
A rise in the adoption of cryptocurrency is expected to raise concerns among firms regarding anti-money laundering compliance. The local and global authorities have been facing the AML risks; economies such as Japan and Switzerland has adopted a considered approach allowed for trade and investment, and others—such as China and South Korea—opting for tight restrictions on exchanges and mining. The changes introduced by the adoption of cryptocurrency are anticipated to provide the AML software developers with an opportunity to diversify their offerings to new applications and end users.
Companies worldwide are offering anti-money laundering software solutions to address the growing challenges of cryptocurrency businesses. For instance, CipherTrace offers cryptocurrency anti-money laundering software that allows exchanges to grow revenue by securely engaging in cryptocurrency transactions, alongside maintaining low-risk profiles. Investors and hedge funds use these software solutions to verify the source of funds, which helps them cut down exposure to money laundering risks and identify nefarious cryptocurrency transactions.
Several laws have been enacted to address money laundering in developed and developing countries. The Financial Action Task Force (FATF) is an international organization that urges countries to establish financial intelligence units to handle information flow between law enforcement agencies and financial companies. Furthermore, government rules enacted by each country's financial intelligence agencies have prompted financial firms to build strong anti-money laundering and anti-terrorist funding solutions. The Patriot Act and Bank Secrecy Act of the US, the EU Fourth Anti-Money Laundering Directive of Europe, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) of Canada, and Anti-Money Laundering and Counter-Terrorism Financing Act of 2006 of Australia's are a few examples of major regulatory bodies and acts.
The anti-money laundering software market is segmented on the basis of component, deployment, product, end-user, and geography. The market analysis by component, the market is segmented into software and services. The software segment accounted for a larger share of the market in 2021. The anti-money laundering software market analysis by deployment, the market is segmented into cloud based and on-premise. The on-premise segment accounted for the largest share of the anti-money laundering software market in 2021. On the basis of product, the market is segmented into transaction monitoring, compliance management, currency transaction reporting, and customer identity management. The transaction monitoring segment accounted for the largest market share in 2021. Based on end user, the market is segmented into healthcare, retail, BFSI, IT & telecom, government, and others. The BFSI segment accounted for the largest market share in 2021. Geographically, the anti-money laundering software market is divided into five regions—North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. In 2021, North America accounted for a significant share of the market.
Impact of COVID-19 Pandemic on Anti-Money Laundering Software Market
North America is one of the most important regions for adopting and developing new technologies due to favorable government policies to boost innovation, a huge industrial base, and high purchasing power, especially in developed countries such as the US and Canada. Hence, any impact on the growth of industries affects the economic growth of the region. The US is a prominent market for anti-money laundering software. Criminals in the region have been exploiting the COVID-19 crisis conditions to gain profits from fraud via electronic means, counterfeit product sales, and cybercrimes. To prevent such threats, communities engaged in action against money laundering are taking measures to identify challenges. The pandemic did not have any significant effects on international cooperation against terrorist financing and money laundering.
Accenture PLC; ACI Worldwide; BAE Systems PLC; Eastnets Holding Ltd.; Assent Business Technology, Inc.; Nasdaq, Inc.; Nice Ltd; OpenText Corporation; Oracle Corporation; and SAS Institute are among the major companies operating in the anti-money laundering software market.
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