The Foreign Account Tax Compliance Act (FATCA) came into force in June 2014. The regulatory act requires foreign financial institutions (FFIs) to provide information to the IRS, (directly or via the local tax authority (depending on the IGA Model signed),on accounts held by US persons or entities. In the case of entities, FFIs are required to establish if there is U.S ownership above 10%. Institutions must also continuously monitor their clients throughout the lifecycle for U.S indicia.
Tackling the Challenge of FATCA Compliance
FATCA regulations aim to reduce the level of tax avoidance by U.S citizens and entities through non-U.S financial institutions and offshore accounts. Achieving FATCA compliance creates significant operational challenges for financial institutions in the form of increased client due diligence. Covered financial organizations must ensure they can comply with the key compliance, data and documentation requirements of FATCA for both new and existing clients.
Simplify FATCA Compliance with Fenergo
Fenergo Tax Compliance streamlines regulatory, data and onboarding processes enabling financial institutions to meet their global tax compliance obligations. Our market-leading solution automates and supports the collection, maintenance and storage of all tax-based documentation. United with the Fenergo Regulatory Rules Engine, the solution can infer and request all supporting tax documentation required upfront based upon specific client data.
For new client onboarding, Fenergo enables the efficient and easy capture of FATCA-specific information through specific data capture fields, which makes the ongoing process of tracking and managing clients exhibiting US indicia easier. For existing clients, our advanced solution conducts an extensive client identification process according to pre-defined US indicia on all available client data, centralizing this data into a single client view.
With this newly-consolidated data, Fenergo can efficiently conduct a pre-classification of all clients based on the strength of the indicia displayed, helping to reduce the number of clients that need to be contacted to self-certify their US status.
CLIENTS WHO TRUSTOUR SOFTWARE SOLUTIONS
We chose Fenergo’s solutions because they will enable us to meet the increasing complex regulatory frameworks with an efficient and client-centric onboarding experience.
John Healy Managing Director, Head of Capital Markets Operations SunTrust Robinson Humphrey
Fenergo’s Regulatory Onboarding solution provides us with an additional level of flexibility and enhances our ability to prioritize our compliance initiatives.
Erica Benjamin Managing Director for Client Onboarding BMO Capital Markets
We chose Fenergo to support regulatory onboarding across our Global Banking and Markets division. We wanted a solution that would support an efficient onboarding experience for all of our customers.