Foreign Authority Tax Compliance Act (FATCA)

Provides a flexible framework for FATCA and CRS enabling FIs to comply with data consistency while reducing TCO and strengthening auditability


Overview


Device Frame
GLOBAL TAX REPORTING

To combat tax evasion, U.S. Foreign Authority Tax Compliance Act (FATCA) regulations have significantly increased tax compliance complexity for financial institutions (FI) with deposit taking, wealth management, and custody footprints worldwide. FIs must perform enhanced customer-account due-diligence and report to the U.S. Internal Revenue Service (IRS) or to their local tax authorities.

FATCA reporting encompasses onshore and offshore reporting obligations and requires FIs to comply with Inter-Governmental Agreement (IGA) reporting formats including IGA1 and IGA2 and is separate from similar obligations FIs may have under the Common Reporting Standard (CRS).

CHALLENGES

  • Extracting and aggregating customer account data from multiple sources and different formats from across the enterprise
  • Performing accurate, timely customer due diligence

  • Monitoring, interpreting, and managing complex reporting requirements
  • Correctly classifying and determining customer account eligibility

Questions to Consider

  • Do our current know-your-client (KYC) and know-your-account (KYA) methodologies enable us to classify accounts accurately?
  • Does our data management and reporting approach adequately protect personally identifiable information (PII)?
  • Are we prepared to address regulatory requirements to clean up undocumented accounts?
  • How concerned are we about tax implications of wrong account classifications?

  • Do we have the capability to correctly identify eligible client accounts efficiently and to perform accurate and on-time due diligence?
  • Have we eliminated our reliance upon spreadsheets and manual processes to collect and handle required data?
  • Are we able to extract and aggregate data from multiple sources in different formats?
  • Are we able to accurately validate customer account data from various divisions?

Solution

END-TO-END FATCA AND CRS SOLUTION

AxiomSL’s data- driven, automated, scalable solution on ControllerView empowers FIs to meet their FATCA compliance requirements and manage CRS reporting on a single platform.

Powered by TaxView, AxiomSL’s extensible data-dictionary methodology, the solution’s eligibility engine enables FIs to map volumes of diverse source data from across silos to FATCA classification specifications.

Deployable on-premises or via AxiomSL’s secure RegCloud, the solution’s inherent data and process transparency and dashboard accessibility enable FIs to monitor, analyze, validate, and sign-off on submissions that accommodate each jurisdiction’s requirements.

CAPABILITIES

  • Enables centralized vs. branch reporting and unified submissions
  • Enables precise data drill-down transparency and lineage
  • Deploys on-premises or via AxiomSL’s secure RegCloud
  • Delivers granular exception management functionality
  • Performs comprehensive validation checks

  • Handles tax-authority feedback and voluntary resubmission via a comprehensive refilling/correction capability
  • Classifies accounts and identifies eligibility leveraging the TaxView data dictionary
  • Provides user-friendly business process, summary and sign-off dashboards
  • Generates XML reports per IRS or local tax authority requirements

Device Frame

A Single Ecosystem for FATCA and CRS Tax Reporting

Leaverage an integrated solution addresses both CRS and FATCA requirements in the areas of client classification and reporting.

AxiomSL's FATCA and CRS Soution

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FATCA and CRS

Benefits

AxiomSL’s continual surveillance, interpretation and updates of regulatory changes enables FIs to comply with confidence across a complex, nuanced FATCA and CRS landscape

Detailed audit-trail functionality dynamically tracks changes to metadata, dictionaries, and documentation for business process management efficiency and audit defense

Pervasive transparency enables users to see logic applied giving FIs control and internal business clarity

Transparent, data-dictionary-powered data management approach provides FIs a solid foundation to steadily whittle down undocumented accounts, improve data quality, and derive business intelligence from having access to customer account data on a single platform

Flexible, comprehensive end-to-end single framework for FATCA and CRS compliance enables FIs to meet complex reporting requirements with data consistency while reducing total cost of ownership (TCO) and strengthening auditability

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