What's Happening?
A new study by Juniper Research forecasts that global spending on Anti-money Laundering (AML) systems will grow by 121% to exceed $75 billion by 2030, up from $33.9 billion in 2025. The report identifies gaps in transaction monitoring and beneficial ownership transparency as key vulnerabilities driving this increase. Banks are expected to account for 64% of AML spending due to their exposure to complex regulatory oversight. The adoption of AI-driven screening and analytics is highlighted as a response to increasingly complex regulatory regimes.
Why It's Important?
The projected increase in AML systems spending underscores the growing importance of compliance in the financial sector. As regulatory requirements become more complex, financial institutions are investing heavily in technology to enhance their detection capabilities and reduce false positives. This trend is likely to drive innovation in the AML technology market, with vendors expanding their offerings to include real-time data integration and transaction monitoring for cryptocurrencies. The focus on AI and explainable AI solutions reflects a shift towards more transparent and adaptable compliance tools.
What's Next?
As the demand for advanced AML systems grows, vendors are expected to continue developing solutions that address sector-specific risks and regulatory demands. Financial institutions will likely prioritize investments in technology that can anticipate and mitigate financial crime risks. The emphasis on explainable AI suggests a future where compliance tools not only detect risks but also provide clear justifications for their decisions, enhancing regulatory transparency and trust.
