Since the early 90s, money laundering has been a major challenge hampering the economic growth of countries across the globe. In the recent years, the world has witnessed some of the biggest money laundering scandals till date. As per the United Nations Office on Drugs and Crime, approximately $800 billion - $2 trillion U.S. dollars are laundered every year. The digitalization of the financial services sector has improved its functioning, but at the same time, has also exposed it to the risk of money laundering.
Money laundering is a term widely associated with financial and business crime, and sometimes defines misuse of the financial system, including terrorism financing and evasion of international sanctions. Due to these money laundering activities, the threat to national security has increased and the governments have become predominantly active in the prevention of such launderings. Over the last few years, financial services industry has undergone significant modifications in technology that can fight money laundering. The companies in the financial industry are integrating new technology and innovative IT solutions to increase their efficiency in combating the menace of money laundering.