Evaluating the Enterprise-Wide Compliance Vendors: Solutions for Anti-Money Laundering and Anti-Fraud

by Arin Ray,  Neil Katkov, PhD, February 22, 2012
Vendor Reviews
Global

Abstract

Financial institutions will spend US$504 million globally on anti-money laundering software in 2012. Celent profiles 22 vendors of AML packages for large, medium and small firms.

Celent's anti-money laundering vendor evaluation reports have become something of a de facto standard, used by financial institutions and regulators around the world. AML has not gone away as a concern for financial institutions; indeed it has expanded, across financial industry tiers and spanning geographies globally.

The behavior detection technology that underpins AML software has also expanded its boundaries within the financial institution. Financial institutions have become increasingly concerned with fighting fraud, and a growing number of firms are taking a holistic approach to these issues, consolidating AML and anti-fraud efforts to combat financial crime. The 2012 edition of Celent’s report, Evaluating the Enterprise-Wide Compliance Vendors: Solutions for Anti-Money Laundering and Anti-Fraud, takes an enterprise risk approach as well, by including in our evaluation the anti-fraud products of the AML vendors.

Celent profiles 22 AML software vendors, evaluates them using its ABCD Vendor View, and hands out XCelent Awards 2012 to four of the vendors.

Celent’s ABCD Vendor View is a standard representation of a vendor marketplace designed to show at a glance the relative positions of each vendor in four categories: Advanced technology, Breadth of functionality, Customer base, and Depth of client services.

“Celent has advocated the ‘enterprise compliance’ approach of combining AML and anti-fraud since our first AML report back in 2002. But until the last few years there were few real life examples to point to,” says Neil Katkov, PhD, Senior Vice President, Asia for Celent and coauthor of the report.

“Although best-of-breed is still a viable technology choice, more financial institutions are now aiming to realize efficiencies through implementing one standardized platform for AML and anti-fraud,” adds Arin Ray, Celent Analyst and coauthor of the report. “This makes the process of selecting a solution appropriate for a firm’s specific needs even more crucial.”

This is the second in a series of four reports covering the current state of the AML technology market. The other reports in the series are:

  • Trends in Anti-Money Laundering 2011. Presents the results of an exclusive Celent survey of AML compliance departments at over 50 financial institutions and benchmarks AML operations and costs, examines key issues in anti-money laundering and anti-fraud, and analyzes trends in AML technology
  • Evaluating the Vendors of Watchlist and Sanctions Solutions. Profiles providers of both batch-based and real time OFAC / sanctions watchlist solutions, and assesses them using Celent's ABCD evaluation model.
  • Specialist Providers of Anti-Money Laundering Technology. Presents an overview of advanced technology issues in AML and provides profiles of a variety of specialist vendors. Because these firms are working in different areas, an ABCD evaluation is not provided.

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 part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (Boston)
Erica Ferguson
eferguson@celent.com
Tel.: +1 617 262 8225

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)208 870 7875

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81.3.3500.3023

Table of Contents

Executive Summary

3

Introduction

4

Report Methodology

6

 

Evaluation Process

6

Celent’s ABCD Vendor View and the XCelent Awards

8

 

The XCelent Awards

9

 

XCelent technology and XCelent Functionality

9

 

XCelent Customer Base and XCelent Service

10

About the Profiles

11

3i Infotech

13

ACI Worldwide

20

Aquilan

26

Cellent Finance Solutions

31

Detica NetReveal (including Norkom Technologies)

37

EastNets

46

Experian

53

FIS

59

Fiserv

65

Infrasoft Technologies

72

Jack Henry & Associates

78

Nice Actimize

82

Ocean Systems

90

Oracle Corporation

95

SAS Institute

103

Tata Consultancy Services

109

Temenos

114

Thomson Reuters

119

Tonbeller

124

Top Systems

130

Verafin

135

Wolters Kluwer Financial Services

142

Comparative Tables

147

Concluding Thoughts

164

 

For Financial Institutions

164

 

For Vendors

165

Leveraging Celent’s Expertise

167

 

Support for Financial Institutions

167

 

Support for Vendors

167

Related Celent Research

168

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