Anti-money laundering systems spending to top $50bn  by 2028

Joy Agwunobi

In an increasingly globalised world, governments and organisations are facing the challenge of preventing and combating money laundering and other financial crimes. In response, countries around the world are making Anti-money laundering (AML) a top priority, with a growing focus on third-party AML systems. 

A recent study by Juniper Research, a leading provider of research and analysis on the global fintech and payments market, found that spending on third-party AML systems is expected to reach $51.7  billion by 2028, up from $28.7 billion in 2019.

According to the Juniper Research report, the predicted increase in global spending on AML systems is primarily driven by the increasing adoption of AI-powered systems. , which can significantly improve the accuracy and efficiency of suspicious activity detection.

Juniper suggested that the role of AI in AML systems is shifting from fully automated systems to what it calls “AI co-pilot” systems, adding that this trend will continue for two key reasons: the high number of false positives generated by AI-only systems and the need for increased explainability of AI-driven decisions.

The study found that AML vendors are no longer limited to the traditional financial sector. Instead, they are now targeting a range of other industries, including legal, real estate, nonprofit organisations, and professional services. The study also projected that global spending on AML systems in these expanded sectors will reach $6.3 billion by 2028, representing a 170 per cent increase from 2024. 

Juniper noted that to succeed in these new markets, AML vendors will need to adapt their offerings and form strategic partnerships. 

Daniel Bedford, the author of the Juniper Research report, suggested that AML vendors need to partner with data providers to expand their reach, noting that data providers can provide access to information from a variety of industries, including gambling and professional services. This, according to Bedford, allows compliance teams to better identify and monitor high-risk transactions and customers, ultimately reducing the risk of financial crime.  He added that by partnering with data providers, AML vendors can gain a competitive advantage and ensure that their solutions remain relevant in a rapidly changing landscape.

The report’s findings indicate that the AML systems market is undergoing a significant transformation, due to a number of factors. These include the increasing adoption of AI technology, the growing emphasis on compliance across industries, and the need for businesses to protect their reputations. The global AML systems market is expected to expand rapidly over the next four years, creating opportunities for new and established players. However, vendors will need to adapt their offerings and embrace new technologies in order to remain competitive.