The Foreign Account Tax Compliance Act (FATCA) is revolutionizing tax withholding, tax reporting, and customer management globally. FATCA has paved the way for many jurisdictions to issue similar directives, such UK FATCA and the G20 agreement for GATCA.
Good data preparation is critical to successful FATCA compliance. Key aspects of FATCA rely on accurate mapping of customers, accounts, and account balances, so that the right information is available on the right accounts for reporting. Instilling the right processes, and supporting compliance with the right technologies, is now more important than ever. Effective data management makes FATCA compliance simpler and more efficient, and provides assurance to your executives, customers, and auditors that your reporting is accurate and complete.
Achieve FATCA compliance with GoldenSource EDM
FATCA starts with good customer data. The GoldenSource EDM Solution for FATCA provides a foundation for customer and account hierarchy management, enabling a single, holistic view of customers and counterparties across all the relationships that they may hold with a Financial Institution from an enterprise wide perspective. This framework is essential to applying proper due diligence to detect individuals subject to US jurisdiction, and to trigger the appropriate tax and withholding workflows.
Additionally, FATCA due diligence requires a linkage between customers and their aggregate account balances. The GoldenSource EDM Solution for FATCA provides for that essential linkage, enabling positions and transactions to be aggregated based on an institution’s customer hierarchy, account hierarchy, or any other dimension. This can sit on top of existing KYC and on-boarding architectures without the need for invasive operational changes.
But it doesn’t end there. FATCA compliance requires understanding of the FATCA applicability of income and proceeds from securities. Each security must be categorized and flagged based upon whether or not it is subject to withholding, whether it is eligible for grandfathering, and whether it has sustained a material change which impacts its grandfathered status. This requires a consolidated FATCA data set, linked to your security master.
A flexible platform to support global foreign tax directives
Given that there are multiple existing and pending directives, it's important to have a flexible platform that can adapt to specific nuances of each regulation worldwide while still providing the efficiency of only collecting and assessing data once. GoldenSource EDM supports multiple rule sets and multiple gold copies, enabling you to address the unique needs of multiple jurisdictions from a single platform. We also provide the flexibility and scalability to easily adapt to evolving requirements over time.
GoldenSource EDM Solution for FATCA/GATCA/UK FATCA:
- Consolidate customer information across lines of business, types of accounts, and types of customer relationships, into a single view of the customer.
- Categorize customers, accounts, and account groups for the appropriate level of due diligence based on aggregate balance. Identify customers, accounts, and account groups subject to US or other jurisdictions.
- Track instrument-level flags for withholding, grandfathering, and material events.
- Trigger withholding and tax reporting workflows in tax systems.
- Dashboards for proactive monitoring capabilities