GoldenSource Solutions for FATCA (Foreign Account Tax Compliance Act)

FATCA is revolutionizing tax withholding, tax reporting, and customer management globally. Starting in early 2014, banks, custodians, and funds outside the US will start registering as a Foreign Financial Institution under FATCA, setting in motion a 2-year process which includes customer due diligence, new tax reporting requirements for US accounts within those institutions, and tax withholding practices for those accounts.

Data Management Challenges of FATCA

FATCA places burdens throughout the customer management lifecycle. 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 it with the right technologies, is necessary particularly at the following points:

• Customer onboarding and due diligence - to flag accounts and customers for potential FATCA eligibility
• Customer/account hierarchy management - to relate accounts so that aggregation of account positions can be done accurately
• Ongoing, at reporting intervals - to aggregate positions across the customer hierarchy, in order to determine which accounts are eligible for reporting and withholding, and to drive the reporting process

Effective data management will make FATCA compliance simpler, and will provide assurance to your executives, customers, and auditors that your reporting is accurate and complete.

FATCA with GoldenSource Customers & Counterparties
FATCA starts with good customer data. GoldenSource Customers & Counterparties provides a foundation for customer and account hierarchy management. GoldenSource Customers & Counterparties enables a single view of a customer, across all the relationships that this customer may have with your institution. 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 Data Warehouse 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.