Global AML expenditure by non-financial sectors to surge 170%

A recent study conducted by fintech and payments market experts, Juniper Research, indicates that global expenditure on Anti-Money Laundering (AML) systems by non-financial institutions is expected to rise sharply. The spend is projected to increase by 170%, reaching USD $6.3 billion by 2028, up from USD $2.3 billion in 2024. This upsurge is driven primarily by tightening regulatory requirements across various sectors, including legal and real estate, which necessitate adopting robust AML systems to monitor and mitigate potential fraud, the analysts state.

AML systems are instrumental in preventing, detecting, and reporting suspicious activities indicative of money laundering, thereby facilitating faster and more accurate compliance and investigation processes. An extract from Juniper Research's new report, "Global Anti-money Laundering Systems Market 2024-2028," is now available for free download, offering insights into this dynamic market.

The report highlights an increasing need for data monitoring solutions that utilise adverse media screening, a process that scans various media sources for criminal activity and negative news. It suggests that AML systems should expand their adverse media screening capabilities to incorporate data from blogs, social media, and search engines. This expansion would enable a more holistic view of customer risk profiles and enhance threat detection accuracy.

In conjunction with adverse media screening, the report stresses the importance of dynamic behaviour monitoring. AML solutions need to adapt to changes in watchlists and adverse media while analysing customers' behaviour against established indicators of suspicious and non-suspicious activities. Effective dynamic behaviour monitoring allows for a more responsive and comprehensive risk management approach.

Daniel Bedford, the author of the research, commented on the importance of collaboration within the field: "AML systems vendors must foster partnerships with an extensive range of data providers to enable real-time updates from reputable news sources and varied risk types. These collaborations will empower AML systems to more effectively analyse behavioural attributes and assess risk."

The research suite provided by Juniper Research offers a comprehensive assessment of the AML systems market, featuring analyses and forecasts across more than 26,720 data points in 60 countries over a period of five years. It includes a Competitor Leaderboard and an examination of current and future market opportunities, positioning it as an essential resource for stakeholders in the AML sector.

This significant growth in AML systems expenditure underscores the increasing regulatory pressures faced by non-financial sectors and the critical role of advanced AML solutions in ensuring compliance and reducing financial crime risks.

As these sectors step up their efforts to meet regulatory standards, the emphasis on enhanced data monitoring and dynamic behaviour analysis becomes ever more crucial. The landscape of AML is set to evolve rapidly, driven by technological advancements and a growing need for comprehensive, real-time risk assessments, Juniper Research finds.