Foreign Account Tax Compliance Act (FATCA) Readiness Assessment
Ultimately, data quality is a business function that should be supported by IT.
US FATCA regulations signed into law in 2010 require Foreign Financial Institutions to classify their (US) customers under U.S. tax principles. FATCA creates the need for financial institutions to gather sensitive client data to identify accounts for the purpose of reporting and monitoring data provided to the US Internal Revenue Service.
Organizations will have to examine and –if necessary - obtain information such as U.S. Tax Status, U.S. Citizen/Residence Status, Place of Birth and account details. Account balances may also be used to determine certain thresholds and for reporting to U.S. accounts. Industry classification codes and ownership hierarchies may also be used to correctly classify organizations, entities and individuals.
Failure to comply will be costly and could result in a 30% withholding on taxable Payments, including U.S. source investment income, including dividends, interest and royalties, and gross proceeds from the disposition of property that could produce U.S. source dividends or interest.
South African companies need to balance the need to report on non-compliant US account holders with the need to protect customer privacy in terms of the Protection of personal Information act. This may require financial insititutions to consolidate customer and account information in order to enusre that customers meet minimu thresholds for reporting.
In addition, SARS FATCA reporting requires address data to be broken into granular address fields - such as house number street name, street type and so on. How much weffort is required to do this, across all your systems.
Our goal is simple: to deliver “peak condition” information fit-for-your-business, however, wherever and whenever you need it.
The FATCA Readiensss Asessment uses off the shelf technology, with comperehensive name and address rules, to quickly measure the complinace of key FATCA indicia to FATCA requirements. In the longer term, our rules can be used to quickly and consistently convert free foramt address daat to SARS reporting formats.
Our approach leverages a platform that is purpose-built to develop the broad based data management services required to support data quality, alignment and production of correct information views to satisfy regulatory reporting requirements. The platform is pre-populated with rules templates that enable the automated assessment, measurement and monitoring of key data elements and metrics that are generated for FATCA reporting. The process leverages over two decades of experience supporting the complex requirements of data management across a global enterprise. The Trillium solution readily discovers ‘unknown’ issues and presents findings in ways that enable business understanding and facilitates transparency in regulatory reporting.
We understand the complexities of managing African data - including multiple languages, minimal standards and a lack of reference data and our methodologies address these complexities for best results.
Our comprehensive rules for South African address data can convert free format address data, in English or Afrikaans, into the formal fields required for SARS reporting, on the fly or in batch,
Add Trillium Software's understanding of US data to find and identify US customers based on values such as US address data, telephone numbers or Social Security Numbers
According to Bloor Research, "the fundamental purpose of IT is to provide information to the business in a suitable format and in a timely manner; and data quality is fundamental to realising the value of that information".
They conclude that a data quality platform that can be directly integrated within in a wide variety of contexts - batch and real-time, at the point of data capture and the point of data extraction, in data migrations and in on-going database maintenance operations - is likely to be quicker to deploy and cheaper to operate than data quality components that are wrapped within a specific environments.
The first step toward success is taken when you refuse to be a captive of the environment in which you first find yourself.
Achieving peak-condition data requires a data quality solution that allows you to define and automate the consistent enforcement of your corporate data standards across business-critical applications, systems, and platforms. We have enhanced the Trillium Software System to provide rapid South African address data quality implementations
Our "out of the box" business rules for South African data have been deployed against hundreds of million of South African name and address records. Your data quality and data governance team can leverage these rules to ensure a best practise deployment of data cleansing and matching without having to re-invent the wheel - saving thousands of development hours and ensuring rapid time to value for your dat aquality and master data management projects.