The North America anti-money laundering solution market is expected to grow from US$ 550.25 million in 2019 to US$ 1,897.82 million by 2027; it is estimated to grow at a CAGR of 14.6 % from 2020 to 2027.
Increasing demand for sophisticated transaction monitoring solutions escalates the growth of the North America anti-money laundering solution market. Transaction monitoring is a crucial procedure and key control in AML and countering the financing of terrorism (AML/CFT) policies and procedures of financial institutions. The transaction monitoring solution allowed financial institutions to detect and evaluate whether transactions pose suspicion when considered against customers’ respective profiles. Over the years, the financial regulators have intensified their focus on monitoring AML risk activities, including a thrust for the financial institutes to adopt a suitable transaction monitoring process. Furthermore, regulators expect the firms to prove the capability and efficiency of their systems. This demand for a sophisticated transaction monitoring system is predominantly driven by the legislations, such as New York States’ Department of Financial Services part 504, and the general move toward the control being evaluated by their outcome quality. The transaction monitoring software platforms allowed the financial institutions across North America to configure a range of monitoring scenarios, perform efficient data analysis, and filter out the genuine suspicious activities from the other false positives; thus, gaining significant traction in the North America market. This, in response, is accelerating the demand for AML enabled with sophisticated transaction monitoring solutions, thereby driving the North America anti-money laundering solution market.
The COVID-19 outbreak is adversely affecting countries in North America, especially the US. North America is one of the most important regions for adopting and developing new technologies owing to favorable government policies to boost innovation, 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 restricts the economic growth of the region. The US is a prominent market for anti-money laundering solutions. Criminals in the region are exploiting the disturbance created by the global pandemic to gain profits from numerous crimes such as fraud via electronic means, the sale of counterfeit products, and cybercrime. To prevent such threats, communities engaged in action against money laundering are taking measures to identify challenges. International cooperation against terrorist financing and money laundering does not appear to be hindered by the global pandemic.
Based on component, the software segment led the North America anti-money laundering solution market in 2019. There are plethora of anti-money laundering (AML) software available as per end user’s demand. Majority of the firms differentiate their need for AML on the basis of their approach. Rule-based approach software, risk-based approach software, behavior-based approach software, and intelligent-based software are a few of the widely deployed AML software solutions. The rule-based approach software operates by comparing transactional data and matches the same with particular scenarios in order to imitate malicious activity. Although, this software are user friendly, the software often raises the concerns regarding false positives. Risk-based approach software solution focuses more on detection of risks associated with suspicious activity that might include intelligence, rule, behavior, or a combination of these approach. Understanding what and how the risk scores are generated and how crucial they are to evaluating customer and enhanced due diligence and monitoring processes. Behavior-based approach software tracks down the normal behaviors of a customer and accordingly generates alerts when fluctuations are seen in their normal behavior. Such software requires reports that include standard deviations, which in response drives the alerts. The intelligent-based approach software involves generation of the alerts based on the trends in customer data that go along with the trends of money laundering. Advantages of AML software such as customization according to requirement and availability of wide range of variants are bolstering its demand, which is driving the North America anti-money laundering solution market.
The overall North America anti-money laundering solution market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the North America anti-money laundering solution market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, anti-money laundering solution market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the North America anti-money laundering solution market. Accenture; ACI WORLDWIDE, INC.; BAE Systems plc; EastNets.com; LexisNexis Risk Solutions Group; Nasdaq Inc.; NICE Ltd.; Open Text Corporation; Oracle Corporation; and SAS Institute Inc. are among players operating in the market.