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 Europe. Further, supportive government regulations supplement the growth of the Europe anti-money laundering solution market to a significant extent. The adoption of anti-money laundering solutions across Europe region has increased over the years due to growing concerns for fraudulent activities and rising online transactions across various verticals. Further, growth in technological advancements, emergence of crypto-currencies, and rise in the adoption of cloud-based solutions supplement the demand for anti-money laundering solutions across Europe. A significant number of players are present in the Europe anti-money laundering solution market. Rise in partnerships and increase in product launches are driving the Europe anti-money laundering solution market. Also, other factors such as growing focus on limiting risks related to digital payment methods is also expected to drive the Europe anti-money laundering solution market.
Furthermore, in case of COVID-19, Europe is highly affected specially the UK and Russia. Businesses in the region are facing severe economic difficulties as they had either to suspend their operations or reduce their activities in a substantial manner. The member states of Europe, such as Italy, Spain, and Germany, have implemented drastic measures and travel restrictions to limit coronavirus spread among its citizens. European countries represent a major market for anti-money laundering solutions due to the adoption of cloud technologies in the BFSI sector. The region has also witnessed a growth in the number of fintech. Reporting from Financial Action Task Force (FATF) members indicates that online criminals have attempted to profit from the global pandemic through rising fraudulent activities. MONEYVAL, a permanent monitoring body of the Council of Europe, has identified challenges and policy responses to prevent money laundering. In Europe, the COVID-19 pandemic is impacting government and private sectors’ abilities to execute AML obligations.
Market Overview and Dynamics
The Europe anti-money laundering solution market is expected to grow from US$ 435.15 million in 2019 to US$ 1,713.02 million by 2027; it is estimated to grow at a CAGR of 16.3 % from 2020 to 2027. Rising focus of FinTech on implementing automated anti-money laundering systems is expected to accelerate the Europe anti-money laundering solution market. The growth in technological advancements across Europe is increasing the number of cyber criminals. However, FinTech firms have the potential to help banks around the Europe to stay competitive in the market. Whether tracking digital currency, machine learning, or connecting data, more robust systems combined with advances in technology has opened up possibilities in the fight against money laundering. With increasing consumer adoption and subsequent transaction volumes in competitive FinTech firms in 2019, many firms shifted to automated anti-money laundering practices. The automated anti-money laundering system provides a negligible amount of false positives compared to those generated by traditional data and technology. This reduces the adverse effects of false positives and higher operational costs. In 2020, due to the growing connection between FinTech and AML solutions, the Association of Certified Anti-Money Laundering Specialists across Europe has announced the launch of a new certification program for FinTech firms who are seeking to meet regulatory standards in a growing market. The association has developed the Certified AML FinTech Compliance Associate program. The program is built to increase the compliance toolkit of FinTech personnel working in financial crime prevention at the entry-level. Thus, increasing focus of FinTech on implementing AML solutions is propelling the Europe anti-money laundering solution market growth.
Key Market Segments
In terms of component, the software segment accounted for the largest share of the Europe anti-money laundering solution market in 2019. In terms of deployment type, the on-premises segment held a larger market share of the Europe anti-money laundering solution market in 2019. Similarly, in terms of product, the transaction monitoring segment held a larger market share of the Europe anti-money laundering solution market in 2019. Further, the BFSI segment held a larger share of the Europe 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 Europe 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; LexisNexis Risk Solutions Group; Nasdaq Inc.; NICE Ltd.; Open Text Corporation; Oracle Corporation; SAS Institute Inc.
Reasons to buy report
Europe Anti-Money Laundering Solution Market Segmentation
Europe Anti-Money Laundering Solution Market - By Component
Europe Anti-Money Laundering Solution Market - By Deployment Type
Europe Anti-Money Laundering Solution Market - By Product
Europe Anti-Money Laundering Solution Market - By Industry
Europe Anti-Money Laundering Solution Market - By Country
Europe Anti-Money Laundering Solution Market - Company Profiles
Some of the leading companies are: