The Foreign Account Tax Compliance Act (FATCA) addresses the avoidance of tax by
U.S. persons overseas and places the heavy burden of tax reporting and compliance
onto financial institutions anywhere in the world with U.S. clients or assets that
could generate U.S. source income. This new law requires affected firms to implement
considerable enhancements to their processes relating to the collection and reporting
of client information. These include enhancements to know-your-customer & anti-money
laundering systems including policies & procedures, record keeping, reporting and
documentation. In addition, global organisations will need to review the status
of all subsidiaries and affiliates to determine a consistent organisational approach
and identification with the IRS.
FATCA TRAC is a one point solution for FATCA compliance and can be categorized into
the following main blocks:
- Firm's FATCA compliance checks.
- Client data management and FATCA eligibility.
- Withholding tax management.
- Reporting to the IRS, fiscal ‘authorities’ and ‘clients’ and MIS.
- Service layer to receive and send data to internal systems such as KYC or core processing
- Integration into SWIFT payment gateway or internal payment system.
- Quick implementation of changes across diverse KYC systems.
- Organisation wide conformance to IRS guidelines.
- One view of customer data, compliance status and IRS reporting.
- Complete FATCA solution for single entities, multi-entity with a “Lead FFI” and
service provider “Elected FFI” scenarios for U.S. and Non- U.S. firms.
- Covers FATCA Project Management, KYC data, investigation / case management, withholding
tax calculation to IRS and client reporting.
- Provides accurate data and a consistent approach for management decisions from the
project outset through the various FATCA implementation phases.
- Minimises the risk of managing, preparing and signing contracts with the IRS and
the ongoing reporting process and increases transparency in the preparation for
- Can be deployed by module based on FATCA phases to avoid redundant costs and efforts.
- Provides the ability to be FATCA compliant without substantial changes in the existing
EDP and process architecture.
- Future-proof: Easily adapted for future IRS changes and similar initiatives from
other global tax bodies.