FACTA penalties loom for financial institutions

Financial institutions have less than a year to comply with the requirements of FATCA (foreign account tax compliance act) or accept a 30% withholding tax on U.S. revenues and proceeds from sales of instruments which yield revenues from U.S. sources. The Trillium FATCA Compliance Data Assessment service enables organizations to gain an early and accurate perspective on the data management challenges they will face in meeting these requirements.

Johannesburg, 12 January 2012 – Master Data Management, the South African resellers for Harte-Hanks Triliium Software announced that they will be providing the Trillium FATCA Compliance Data Assessment service to assist financial institutions (FFIs) that must comply with FATCA or accept significant penalties.

FATCA is a new directive of the United States government that requires FFIs with U.S. client accounts to share information on those clients with the United States Internal Revenue Service (IRS) to ensure that U.S. citizens report income above certain levels earned outside the United States. This impacts any FFI, including banks, insurance companies, brokers, and investment firms, that deals with U.S. individuals or trades in U.S. markets.

According to the South African Institute for Financial Markets the scope of FATCA is significantly broader than the current Q1 regime and the act cannot be adhered to with existing processes and systems. Participating FFIs must prove (annually) that they have identified all relevant clients and report the relevant client information to the IRS, or accept a 30% withholding tax on payments.

The Trillium FATCA Compliance Data Assessment helps FFIs measure the state of their data for enabling the identification of U.S. accounts and the sharing of necessary information as required by the act.  The assessment provides a detailed ‘map of the gaps,’ allowing firms to determine and plan any data or process remediation activity that will be required to ensure that data is fit to support the requirements of the act on an on-going basis. 

The assessment combines a purpose-built data quality platform with unmatched data analysis expertise and professional consulting services. The platform leverages pre-populated rules and templates that facilitate the automated assessment, measurement and monitoring of key indicia of the qualification criteria for FATCA reporting. This assessment includes review of all data elements necessary for determining U.S. ownership of an account and stat review, for determining reporting as defined by the act. The assessment leverages over two decades of experience supporting the complex requirements of data management across global enterprises, including many of the world’s largest financial institutions. The process readily discovers ‘unknown’ issues and presents findings in ways that enable business understanding and facilitates transparency in regulatory reporting.

The Trillium FATCA Compliance Data Assessment is one of a number of Trillium Software Risk and Compliance Solutions designed to help organizations ensure that the quality of the data feeding into critical risk measurement and monitoring processes provides the transparency and control required, including for Basel II, Basel III, Legal Entity Identifier (LEI) and Solvency II. To learn more, about these solutions, click here or contact Master Data Management at +27 11 485 4856

understand the link between data quality and business process improvement with this webinar

Data Quality Matters

Manage data for business returns
  • Think about data management from the beginning

    One thing that no one considers when creating a new application is how to store data. Sure, they may define some fields and data structures (if they aren’t going to rely on Excel), but no one knows exactly how the physical information will be captured. It’s amazing how fast new data gets captured. Servers are [...]

  • I wrote a letter to my love – who owns data quality?

    “I wrote a letter to my love, and on the way I dropped it.” The old children’s game neatly summarises the relationship between IT and Business when discussing data quality and data governance. Imagine that in the early flushes of your first major love you are forced to move hundred of miles across country, separated from the [...]

  • IS 2012 the year of delivery for data quality?

    The relevance of data quality in achieving delivery for Business Intelligence (BI) implementations has becoming increasingly clear over the past few years, and in 2012, it is expected that this trend will be continued. Predictions by Boris Evelson of Forrester Research suggest that delivery will be a primary focus for BI projects for the coming [...]

  • The business takes up data governance

    Recent Forrester Research on top trends in EA is encouraging as it affirms that business is starting to recognise the value of some of our key value propositions. According to their research, leading firms are recognising the importance of data governance to the success of many other initiatives, including master data management. As a result, data [...]

  • Is bigger data better data?

    A friend recently updated her Facebook  status to “engaged”. Shortly afterwards she noticed that the ads that were popping up around her facebook page were wedding oriented. Another friend, after adding some photographs to her profiles was freaked out by the question – “Did you take these at Bob’s wedding in Nieu Bethesda?”. She had [...]

Articles Related Items