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Combating Money Laundering and Terrorist Financing: Evaluating Vendor Solutions

Combating Money Laundering and Terrorist Financing: Evaluating Vendor Solutions

In 2008, U.S. banks and brokerages are expected to spend an estimated US$605 million on anti-money laundering automation efforts.

By Eva Weber

Boston, MA, December 17, 2007 – A new report from Aite Group, LLC projects that spending on anti-money laundering solutions by banks and brokerages will continue to grow, continuing the ramp-up from recent years. The report provides an overview of AML market issues and profiles 16 prominent vendors, based on responses to a detailed questionnaire, solution demonstrations and interviews with reference clients.

Compliance issues surrounding money laundering and terrorist financing are major concerns to financial institutions, as regulators continue to demand that these firms effectively scrub customer names against watch lists, and monitor and manage vast volumes of transaction data. While there is no right way to prevent money laundering, it is clear that technology plays a critical role in consistently and effectively assisting institutions, and handling streams of transaction data. Today, even those institutions that were once content to manually review transactions are realizing that there is too much data to wade through, and that the risks of regulatory action as a result of missteps are too high. As a result, in 2008, banks and brokerages are expected to spend a total of US$605 million on anti-money laundering technology efforts, including software, hardware, and a combination of internal and external services.

"As regulators continue to raise the bar on AML compliance, approaches that several years ago seemed cutting edge are now standard operating procedure, and it can be difficult for institutions to keep abreast of this constantly evolving space," says Eva Weber, analyst with Aite Group and author of this report. "Fortunately, vendors have gained experience and built out the functionality of their solutions to ease the burden on financial institutions, allowing institutions of all sizes to improve their overall compliance and increase the level of automation."

This 57-page Impact Report contains 12 Figures and 6 Tables. It profiles the following vendors and compares their solutions: 3i Infotech, ACE Software Solutions, ACI Worldwide, Actimize, ChoicePoint, FircoSoft, GlobalVision Systems, Jack Henry, LogicaCMG, Mantas, Metavante, NetEconomy, Norkom, SunGard, TCS, and Wolters Kluwer.

Clients of Aite Group's Fraud & AML service can download the report.