Financial crimes are happening more often and becoming harder to detect. That’s why strong Anti-Money Laundering (AML) compliance is more important than ever. Financial institutions are choosing smart AML solutions to protect themselves. IDMERIT UK provides robust identity verification and anti-money laundering solutions to help your business stay ahead of new and evolving threats.
With AML solutions from IDMERIT UK, financial institutions can reduce fraud and minimize risk. Our AML solutions use advanced technology to detect and prevent financial crimes. Our Identity verification solutions help businesses to verify the identity of the customers instantly.
Global Anti-Money Laundering (AML) Market is expected to rise to $9.38B by 2030 from the current $4.13B. at a Compound Annual Growth Rate (CAGR) of 17.8% during the said period.
Key AML Market Growth Factors
More and more financial institutes are embracing smart analytics, also there is a rising demand for infrastructure that offers a complete view of customer and transaction data. This has led to a rising adoption of AI machine learning, and behavioral analytics to detect highly innovative and updated money laundering schemes and reduce false positives.
There is an increased demand by financial institutes for real-time risk scoring, network analysis, as they help in identifying fundamental ties between customer accounts and their transactions.
Regulators are increasingly urging banks to enhance data visibility across silos. This has led to many institutions to develop centralized data hubs that unify internal and external data sources, inevitably boosting both compliance accuracy and the effectiveness of risk profiling.
The KYC/Customer Due Diligence (CDD) and sanction screening segment is going to be forerunner between 2025 to 2030.
Propelled by rising growing regulatory demands and the complexity of global compliance requirements the sanction screening and KYC/CDD solutions are enabling the financial institutions and other regulated entities to satisfy the standards set by the U.S. Bank Secrecy Act (BSA), the EU’s 6th Anti-Money Laundering Directive (6AMLD), and FATF guidelines.
Financial institutes are using the KYC/CDD tools primarily to help build risk profiles, identify beneficial ownership, and monitor ongoing transactions for suspicious activity.
Essentially, sanction screening software is given importance as it gathers information on all the individuals and organizations listed on international sanctions lists provided by institutions like OFAC, the UN, and the EU.
With the rise in international sanctions, especially those driven by geopolitical developments are becoming more complex, automated, real-time screening systems are used by the financial institutions to safeguard them from transactions with blacklisted individuals and companies. These solutions are integrated smoothly with broader AML platforms and deploy AI to eliminate false positives and amplify overall efficiency.
It is expected that the on-premises segment is expected to encompass the market in size throughout the forecast period.
The organizations acquiring and installing software on their own data centers shall provide more customization flexibility, making it possible for the institutions to set the AML systems with internal risk management processes and smooth integration with traditional systems. Acquiring and installing software on site offers the organizations complete control over data and systems, which is extremely essential for handling sensitive customer data and financial transactions. The on-site setup works best for the capital markets and insurance firms as they have complex operations and numerous regulatory requirements, as they are also often the most practical choice to meet specific to the center compliance needs. Another thing that makes the AML system attractive on-site is the lower latency, higher performance, and strong internal governance. Major banks and financial institutions from regions with strict data localization laws like Germany, India, and the Middle East, prefer on-site infrastructure to host their AML operations.
By region, Europe is expected to grow at the highest CAGR during the forecast period.
After the EU’s implementation of the Sixth Anti-Money Laundering Directive (6AMLD) it would now have a wider and larger scope of predicate crimes and emphasize the criminal liability of legal persons, making it critical to adopt advanced AML Solutions. The formation of the European Anti-Money Laundering Authority (AMLA) will definitely enhance the regulatory harmonization and oversight for all the member states, boosting demand for compliance solutions. Countries like France, Germany, and the Netherlands have created a strong reporting requirement for virtual assets and cross-border transactions. Meanwhile, Eastern European nations are investing in AML systems to match the expectation of the EU. The countries are noticing increased attention on monitoring cryptocurrency and fintech platforms leading to speedy installation of sophisticated AML solutions strengthened by analytics, AI, and machine learning.
