Covalent Equity Partners has made an undisclosed growth investment in AML Analytics to fund new testing engines and international expansion. AML Analytics provides independent testing, validation and risk analytics for anti-money laundering (AML), counter-terrorist financing and sanctions controls. The transaction’s value and Covalent’s ownership interest were not disclosed.
Founded in 2010, AML Analytics uses reference datasets and benchmarks to evaluate financial-crime systems and control architectures. Its platform supports the measurement, calibration and verification of AML systems. The company says more than 50 supervisory authorities and 1,450 financial institutions use its technology across almost 60 countries.
Covalent’s capital and operational support will fund AML Analytics’ engineering roadmap, next-generation testing engines and wider geographic coverage. The announcement provides no timetable or technical specification for the new engines. Founder and Group Chief Executive Officer Justin Holder will continue to lead the company with its existing management team.
The companies link the investment to the adoption of generative and agentic technologies in financial services. They argue these developments are creating additional routes for financial crime. AML Analytics’ datasets and independent benchmarks are intended to help institutions and supervisors assess whether their controls continue to detect relevant risks.
“From day one, our mission has been to give the defenders of the financial system the empirical tools to stay ahead of increasingly sophisticated threats. Covalent shares our conviction and brings deep sector and operational expertise, which will help us scale that mission to more institutions and regulators worldwide,” said Holder.
AML Analytics currently tests sanctions-screening and transaction-monitoring systems. Its products include tools for ongoing validation, system benchmarking and tests using synthetic transaction data. The company also provides testing services for supervisory authorities conducting reviews across regulated firms.
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