Market Introduction
An anti-money laundering (AML) solution is deployed to meet the financial institutions' legal requirements for preventing and reporting the activities of money laundering. Increasing online transactions and rising concerns regarding fraudulent transactions have steered the adoption of anti-money laundering solutions across APAC region. Further, supportive government regulations supplement the growth of the APAC anti-money laundering solution market to a significant extent. The governments and regulators in APAC are strongly focusing on adopting the standards set by the intergovernmental Financial Action Task Force (FATF) to reinforce anti-money laundering. Rise in partnerships and increase in product launches are driving the market. For instance, in September 2017, SAS Institute announced its partnership with Sumitomo Mitsui Financial Group, Inc. According to this partnership, Sumitomo Mitsui Banking Corporation deployed SAS AI to detect and report fraudulent transactions. Other factors such as growing adoption of cryptocurrency and advanced data analytics are expected to drive the APAC anti-money laundering solution market during forecast period.
Furthermore, in case of COVID-19, APAC is highly affected specially the China and India. The governments of APAC countries took all possible steps to reduce the effects of the coronavirus pandemic by announcing lockdown. The temporary shutdown of companies resulted in increased digital channels of communication among the customers and organizations. However, during Q1 and Q2 2020, several companies were temporarily shut, which disrupt the anti-money laundering solution vendors and banks. Thus, the market was slightly impacted. With the release of lockdown, the market again started showing signs of growth. Criminals are taking advantage of the global outbreak to carry out financial fraud, which includes advertising and trafficking in counterfeit products, providing fraudulent investment opportunities. In light of growing threats, businesses in the region are taking necessary steps to identify suspicious behavior, investigating it thoroughly and, where appropriate, reporting it to the relevant authorities. Thus, this surges the demand for an anti-money laundering solution. Since the COVID-19 pandemic outbreak, the banks in the region are now focused on transforming their core operations and are working on AI-based technologies. Further, due to pandemics, the vendors are also focused on offering quality self-service capabilities, which are highly customized as per customer’ requirements.
Market Overview and Dynamics
The APAC anti-money laundering solution market is expected to grow from US$ 376.59 million in 2019 to US$ 1,681.34 million by 2027; it is estimated to grow at a CAGR of 17.9 % from 2020 to 2027. Escalating demand for sophisticated transaction monitoring solutions is expected to accelerate the APAC 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. The transaction monitoring software platforms allowed the financial institutions 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 APAC market. This, in response, is accelerating the demand for AML enabled with sophisticated transaction monitoring solutions, thereby driving the APAC anti-money laundering solution market.
Key Market Segments
In terms of component, the software segment accounted for the largest share of the APAC anti-money laundering solution market in 2019. In terms of deployment type, the on-premises segment held a larger market share of the APAC anti-money laundering solution market in 2019. Similarly, in terms of product, the transaction monitoring segment held a larger market share of the APAC anti-money laundering solution market in 2019. Further, the BFSI segment held a larger share of the APAC anti-money laundering solution market based on industry in 2019.
Major Sources and Companies Listed
A few major primary and secondary sources referred to for preparing this report on the APAC anti-money laundering solution market are company websites, annual reports, financial reports, national government documents, and statistical database, among others. Major companies listed in the report are Accenture; ACI WORLDWIDE, INC.; BAE Systems plc; EastNets.com; LexisNexis Risk Solutions Group; Nasdaq Inc.; NICE Ltd.; Open Text Corporation; Oracle Corporation; SAS Institute Inc.
Reasons to buy report
APAC Anti-Money Laundering Solution Market Segmentation
APAC Anti-Money Laundering Solution Market - By Component
APAC Anti-Money Laundering Solution Market - By Deployment Type
APAC Anti-Money Laundering Solution Market - By Product
APAC Anti-Money Laundering Solution Market - By Industry
APAC Anti-Money Laundering Solution Market - By Country
APAC Anti-Money Laundering Solution Market - Company Profiles
Some of the leading companies are: