FATCA significantly increases the need for banks and financial institutions worldwide to capture, analyze and submit detailed data of customers subject to US withholding tax and tax liabilities to the US Internal Revenue Service. Companies that are not able to set up effective compliance face huge operational risks with penalties and fines into the millions. To comply with FATCA regulations, financial institutions will need to employ enhanced due diligence procedures to identify and report US Persons who are using non-US Financial accounts or Non-US entities to evade US taxes. Financial institutions will need to develop additional capabilities and modify existing operational processes as penalties for non-compliance

Implementing a FACTA Compliant Program within your Organization

·         Creating and implementing a FACTA Compliance program and timeline/roadmap

·         Creating a culture of risk awareness and adverting silos

·         Understand approaches set by IGAs

• Leveraging existing KYC/ client on boarding & due diligence processes and systems
• Understanding your organization’s goals and strategy implications with FATCA

Reviewing FACTA Fundamentals, Compliance and Requirements

·         Creating and implementing a FACTA Compliance program and timeline/roadmap

·         FATCA Reporting and operations of information

·         Foreign Sourced income

·         Creating a culture of risk awareness/silos

·         How technology and operations fits into being FATCA compliant

Examine FACTA Documentation and Ongoing Business Requirements

·         Understanding the requirement in your US Clients and related noncompliant risks

·         Identify and classify customers in the different categories to requirements and rules related

·         Relevant documentation to obtain and define relevant income for specific customers

·         Reporting obligations

·         Withholding on non-financial foreign entities

Payment Withholding

·         Agreements with IRS and due diligence, reporting and withholding obligations

·         Integrating withholding systems

·         Payment and withholding schedules

Understanding and Addressing Key FACTA Compliance Issues and Main Risks Involved

·         Operational Issues

·         Compliance Issues

·         Legal Issues

FATCA Project Governance Structure and the Establishment of a Project Management Office

·         Review FATCA and compliance required for your organization

·         Enable enterprise-level effort to allocate budget, people and project ownership

·         Determine ownership to projects and timelines

Monitoring, Review, and Continuous Improvement

·         Responsibility for maintaining and improving FATCA Compliance in the early stages

·         Approach to risk maturity and continuous improvement of FATCA Compliance & Reporting 

• Improve effectiveness of implementing client on-boarding/KYC and operational changes to be FATCA compliant- define new structures, roles and processes required to ensure cost effective and complete compliance • Understand what it takes to be FATCA Compliance along with your organization’s goals to FATCA • Examine client due-diligence to discover clients relevant to FATCA • Conduct an analysis of your current operations for FATCA Implementation • Review implementation status and timeline that mirrors the IRS reporting requirements • Align FATCA to AML program efficiencies for greater compliance roll out • Success factors of an effective FATCA team