FATCA is on everyone’s minds right now, with many financial institutions trying to figure out cost-effective and efficient ways to comply with this new IRS-driven regulation. However, FATCA is not the only regulation in town. In fact, it’s only one of many regulatory-driven challenges that are expected to beset financial institutions over the coming months and years. Now with talk of a UK FATCA, it’s only a matter of time before other countries engage and create their own versions and flavors of FATCA.
Financial institutions should be looking to implement a classification framework that is capable of evolving as new regulations emerge or existing ones are reinforced. A classification framework should enable financial institutions to solve immediate regulatory challenges and ensure the institution is ready for and compliant with the raft of classification-specific regulations that are coming down the road such as Dodd-Frank, MiFID II, and the 4th EU Money Laundering Directive.