Most people don’t think about the ramifications of not using entity extraction software in their monetary transactions. This is a huge mistake because you can avoid unnecessary fines and penalties from the authorities when you use it. The article will walk you through why entity extraction software should be used in your business to keep things running smoothly.
Prevents Illegal Money Transactions.
Today it is estimated that up to 250 billion dollars in international money transfers are either unreported or untaxed because of the ease with which financial criminals can transfer funds around the world and hide their identities. One of the easiest ways they can get away with this is by using the names of friends or loved ones that are just slightly different to differentiate themselves from the real people they’re impersonating. Entity extractions ensures that the person you’re sending money to is the actual person you’re intending since it can recognize the different variations the recipient would have for their name across their accounts, meaning that an impersonator wouldn’t be able to trick you into thinking they’re someone else as the technology wouldn’t recognize them.
Compliance With Legal Requirements.
Every financial institution, including banks and money remitters, must have a system to know where the customer comes from financially because sanctions prohibit entering into transactions or doing business with certain countries or individuals who are on embargo lists due to their terrorist activities, drug trafficking.
Protects from Non-Compliance
Today, financial institutions must have a system that detects and reports suspicious transactions associated with money laundering to prevent terrorism or other illegal economic activity. Having software in place to help circumvent that from even happening means that you’re able to skip the headache of worrying about suspicious transactions or activity when it comes to your transactions, as you’re always sure of where your money is going and the people that you’re sending it to.
Prevent Financial Fraud.
Non-compliance with anti-money laundering laws and international payment regulations can cause significant harm to a bank’s reputation, which is why it’s a good idea to conduct all money transfers, especially in large sums, through an entity extraction software to ensure the money goes to the correct location and not just any other program because you want to avoid fines and penalties from authorities for breaking these rules, accidentally or not.
Improve Customer Service.
Today, customers expect fast and convenient transactions, and that they’re able to do everything from their computer or mobile device.
Using entity extraction software provides a better user experience for your customers because it is intuitive and easy to use with minimal downtime between transfers. This type of system also allows you to get paid faster since you do not have to go through the uploading documents needed for compliance with anti-money laundering laws.
Reduces Costs and Increases Efficiency.
Having entity extraction software available for you to use is a significant cost-saving system for financial institutions because it allows you to do your work faster and helps reduce the number of employees needed to ensure compliance with anti-money laundering laws.
This leaves more time for customer support agents who can help customers make a money transfer or answer any money-related questions they might have.
Using an entity extraction tool in your monetary transactions will help you avoid unnecessary fines and penalties from authorities, better serve your customers by providing them with fast and convenient transfers, improve the customer service experience for both the sender and receiver, reduce costs while increasing efficiency at the same time and protect yourself from legal ramifications due to non-compliance with anti-money laundering laws.