28 Jun FATCA and CRS Reporting: Recent Trends, Developments and Critical Issues
More regulations call for more responsibility. As financial institutions expand, so does the burden of keeping up with constant multi-jurisdictional FATCA and CRS reporting changes. With varying interpretations by regulators and varying jurisdiction-specific requirements a reality, many institutions have been forced to reevaluate their FATCA and CRS reporting solution and compliance approaches.
One of the challenges highlighted during the webinar was firms’ reliance on overly manual processes for classifying and qualifying customer accounts. As one of the speakers stated: “Poor classification leads to poor compliance.” Additionally, firms struggle with navigating CIC (change in circumstance) of their accounts. Having an automated, end-to-end FATCA/CRS solution with data and rule drill-down capabilities that can classify accounts and filter them by their respective “in scope” qualifications is imperative.
As the recent IRS TIN requirement changes for FATCA and the new CRS 2.0 schema have shown, the need to achieve more granular data accuracy is a major challenge for many firms. In addition, whether voluntary or non-voluntary, the need to re-file incorrect/incomplete submissions has always proven to be a difficult task made more complex with the new CRS 2.0 schema. Without a robust FATCA and CRS reporting solution, many firms are unable to adequately amend, correct, and void in a timely fashion.
Lacking the technology and data integrity needed for adequate FATCA and CRS reporting, many firms are forced to resort to costly outdated manual processes. With constantly changing jurisdictional rules and regulations, reporting firms need access to subject-matter experts who monitor and interpret the global FATCA and CRS reporting landscape.
- Guo Jian Tan, Global Tax Product Manager, AxiomSL
- Pranay Rathi, Project Director, ANZ
- Nike James, Tax Partner, KPMG