Evaluating the Vendors of Anti-Money Laundering Solutions 2006

by Neil Katkov, PhD, August 29, 2006

Abstract

Tokyo, Japan August 29, 2006

Spending on anti-money laundering software globally will increase to US$375 million by 2009, a compound annual growth rate of 5.9%.

Technology has become an essential tool forcomplying with anti-money laundering (AML) and counterterrorist funding legislation. Formerly tech-unaware regulators in the US and EU are now emphasizing the importance of effective AML analytics as a cornerstone of compliance. Both financial institutions and regulators are demanding enhanced functionalities from AML solutions, driving the development of improvements to these systems.

In the three years since Celent's first AML vendor report, Ranking the Vendors of Anti-Money Laundering Solutions, July 2003, the vendor landscape has gelled. Firms that then had only a few clients struggling to make the new technology work are now fixtures of the AML technology landscape. Vendors have significantly upgraded their systems, enhancing usability with web-based interfaces, improving workflow efficiency with advanced case management features, and plugging gaps in features and functionality. In an ever-more competitive market, newer entrants have been relentless pursuing scalability in a bid to win sought-after multicountry deals from the big global financial institutions, while conversely the high end system vendors are launching "AML lite" versions of their software aimed at the emerging regional, small, and midsize financial institution market.

"The intensified AML policies of the US have produced a ripple effect on the international regulatory scene that has driven growing investment in AML software worldwide," says Neil Katkov, author of the report. "But in the AML software industry, the question on everyone's lips is, 'How long will this growth continue?'"

This report is the most comprehensive handbook to the AML software market available. It profiles and evaluates 19 established and emerging vendors of anti-money laundering software, including BI-heavy transaction analysis software and filtering solutions for screening government watchlists such as OFAC. Each vendor is profiled individually, with accompanying screen shots and architectural diagrams. Detailed tables compare the client bases, features and functionality, technology platforms, typical implementation schedules, and pricing structures and price ranges of the solutions.

The evaluation of the solutions, presented in Celent's ABCD vendor view, is based on vendor responses to an extensive RFI, in-depth product demonstrations, and over 50 conversations with the financial institutions who use the software.

Vendors profiled in the report are Accuity, Ace Software Solutions, ACI Worldwide, Actimize, ChoicePoint/Bridger Insight, Experian/Americas Software, Fortent/Searchspace, FircoSoft, LogicaCMG, Mantas, Metavante/Prime Associates, NetEconomy, Norkom Technologies, Northland Solutions, SAS Institute, Side International, STB Systems, Top Systems, and Wolters Kluwer Financial Services/PCi.

The 100-page report contains 46 figures and 12 tables. A table of contents is available here.

 

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Tokyo, Japan August 29, 2006

Executive Summary 3
Introduction 4
Vendor Profiles 10
  Accuity 11
  Ace Software Solutions 14
  ACI Worldwide 18
  Actimize 22
  ChoicePoint/Bridger Insight 25
  Experian/Americas Software 29
  FircoSoft 32
  Fortent/Searchspace 36
  LogicaCMG 39
  Mantas 43
  Metavante/Prime Associates 47
  NetEconomy 52
  Norkom Technologies 57
  Northland Solutions 61
  SAS Institute 64
  Side International 68
  STB Systems 72
  TOP Systems 75
  Wolters Kluwer Financial Services/PCI 78
Comparative Analysis 82
Celent's ABCD Vendor View: AML Vendors 2006 93
  Reading the ABCD Vendor View 94
Selecting a Vendor and Following Through 97
Objectivity and Methodology 99

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