Ranking the Vendors of Anti-Money Laundering Solutions
Abstract
"Just as crucial as high tech analytical capabilities are an AML solution's ease-of-use and workflow features," comments Neil Katkov, Celent Senior Analyst and author of the report. "Faced with the potentially explosive costs—including increased compliance personnel requirements—of complying with the US PATRIOT Act, financial institutions need to find the most cost-effective, labor-saving method of achieving compliance."
Vendors included in this study are: ACI Worldwide, ACL Services, Actimize, Americas Software, Bankers Systems, Bridger Systems, FircoSoft, GIFTS Software, Infrasoft, Mantas, Net Economy, Prime Associates, SAS Institute, Searchspace, STB Systems and Sybase.
Celent estimates that between 2003 and 2005, banks, broker-dealers and insurance carriers in the US will spend an estimated total of US$632.2 million on anti-money laundering software solutions and related hardware and services.
The stringent compliance requirements of the USA PATRIOT Act, passed in October 2001, is driving a wave of spending in anti-money laundering (AML) applications. While large firms are the most active in implementing new AML solutions, mid-tier and even small institutions are also getting involved. Celent estimates that by 2006, 94 percent of large financial institutions in the US, 76 percent of mid-tiers, and 49 percent of small firms will have implemented new AML technologies.
Moreover, adoption of AML technologies is turning into something of a global phenomenon, as financial institutions around the world increasingly see the need to comply with US AML measures in order to remain trusted business partners of US financial institutions, and as regulators in other countries feel pressure from the US to put their AML houses in order.
Rank |
Transaction Monitoring | Watch List Filtering | ||
| Large Institutions | Small-Medium Institutions | Large Institutions | Small-Medium Institutions | |
| 1 | Searchspace | Actimize | FircoSoft | Prime Associates |
| 2 | Mantas | STB Systems | -- |
Americas Software |
| 3 | ACI Worldwide | Prime Associates | -- |
Bridger Systems |
| Vendor to Watch | SAS Institute | Infrasoft | -- |
-- |
| Source: Celent Communications | ||||
Financial institutions looking to implement this technology, however, are faced with a bewildering array of both established and newer firms offering AML technology. In a new report,Ranking the Vendors of Anti-Money Laundering Solutions, Celent Communications profiles 16 of the leading vendors, provides a detailed comparative analysis of their products, and presents its assessment of the top solutions in two categories, transaction monitoring solutions and watch list filtering solutions. The results of the study are summarized below.