FATCA - The Foreign Account Tax Compliance Act

The Foreign Account Tax Compliance Act (FATCA) requires all foreign financial institutions (FFIs) and any other financial intermediaries to report and disclose U.S. assets in their accounts. Under the legislation, FFIs will be required to enter into disclosure compliance agreements with the U.S. Treasury. A 30 per cent penalty for withholding tax will be levied on the gross proceeds of any US assets for non-compliance.

Firms need to prepare for FATCA Now

Although reporting requirements to comply with FATCA have been delayed until 2014, it is essential that firms act now. This involves evaluation and analysis of various case scenarios and records very carefully in order to identify which clients are at likely to be covered by FATCA, as well as the resulting tax implications. Firms must therefore ensure they have the appropriate software and procedures in place to comply with FATCA in advance of these deadlines.

Why AutoRek?

AutoRek is an extensible data management tool which can process millions of records per minute. The key capabilities of AutoRek allow it to source data from lots of systems or sources, associate that data with other data and enrich the data set as new linkages, sources and information becomes available.

Thus many accounts associated with each other can be linked for assessment for risk of FATCA being applicable (e.g. total assets or income exceeds de minimis) and multiple attributes can be included in business rules to indicate whether someone (or their family) may be subject to FATCA provisions. This may be a place of birth, a passport number, their home address or even with whom they have another bank account. We assist the clients capture the data, highlight the records that require assessment or completion and communicate with their clients or stakeholders the outcomes.

Download our FATCA Industry Whitepapers 

Fill in the form below to receive a copy of two of our FATCA industry whitepapers:

- 10 FATCA Facts All FFIs Must Know

- FATCA - Rapid Discovery Approach