Anti-Money Laundering Tools Market is gaining significant traction with DigiPli introducing its holistic anti-money laundering solution for financial institutions

 

Anti-Money Laundering Tools are now required in large amounts for everyday transactions. This is due to the fact that the most traditional transaction monitoring systems and services do not record or require detailed information about the customers' identities, for instance. Many government authorities are focusing on reducing financial crimes that could threaten the financial landscape. These financial crimes including money laundering, embezzlement, fraud, terrorist financing, bribery and corruption, and tax evasion. Government authorities are employing different tools and software applications, in order to curb these crimes. Thus, such factors can indeed aid in growth of the anti-money laundering tools market. Recently, in February 2021, DigiPli launched its holistic anti-money laundering solution for financial institutions. 

Most of the systems and services are unable to identify unusual or suspicious transactions. It goes on to explain that this deficiency in anti-money laundering tools results in inaccurate data collection, leads to duplication of data and misinterpretations of activities. These factors are used by hackers to defraud banks and other financial institutions. One of the key factors fueling the market development is non-compliance with strict AML regulations, which could result in monetary penalties, sanctions, and reputational loss. For instance, as per the Bank Secrecy Act (BSA) 1970, in the U.S., a fine of US$ 10,000 per day to US$ 100,000 per day may be imposed on financial institutions as a consequence of noncompliance with anti-money laundering (AML) regulations. Thus, such factors can stimulate growth of the anti-money laundering tools market.

In order to prevent identity theft and money laundering, financial institutions and other organizations have established strong anti-money laundering rules and procedures. Among these requirements are requirements that commercial banks and other financial institutions follow when processing any type of debit or credit card transaction. However, there are certain issues regarding the market that could impede potential growth. For instance, there is a dearth of skilled personnel with adequate knowledge of AML tools and solutions. Besides, higher costs involved in deployments of AML solutions could inhibit growth of the anti-money laundering tools market in the near future.

On the other hand, fraudulent investment schemes are also being targeted by these technologically savvy criminals through the use of fraudulent transactions and other techniques. Some of these include executing phishing attacks and sending out spam emails to collect personal information. When it comes to geographical impact, North America is exhibiting a positive outlook in the anti-money laundering tools market. This is typically due to the fact that there is the presence of a large number of banks across the region. On the contrary, Europe is gaining significant traction with continuous enhancements in regulatory norms governing in BFSA sector.