Global market intelligence, research, and advisory company BIS Research on Monday said policy measures of the Indian government like demonetisation have led to large scale increase in Suspicious Transaction Reports (STR).

In a statement issued here, BIS Research said, as per its latest report “Global Anti Money Laundering (AML) Software Market – Analysis and Forecast (2017-2023)”, owing to demonetisation and enhanced surveillance from tax officials, the STRs which have increased from a little over 20,000 in financial year (FY) 2011 to over a 100,000 in FY 2016, and reached nearly 500,000 in FY 2017.

It estimates that this number will hit 1,046,283 in FY 2018, adding greater emphasis for the need to enhance compliance with established anti-money laundering norms in the country.

According to the study, the global anti-money laundering software market is expected to reach a size off $1.4 billion by 2023.

“This growth is expected to be driven by the increased need to monitor suspicious transactions and regulatory compliance with international regulatory bodies. The report indicates a massive increase in suspicious transactions in India, even as the number of such transactions nearly quadrupled between FY 2016-17,” it said in a statement.

According to the report, increased awareness and the more proactive attitude within the government and reporting entities such as banks and other financial institutions against suspicious funding movements will be a key factor in driving the growth of the anti-money laundering software market in India.