By Richard Grint, financial services regulation expert
The IRS, the US tax agency, has extended the deadline for Foreign Account Tax Compliance Act (FATCA) withholding by six months as part of a series of more detailed changes announced recently. These include removing the requirement to report on 2013 population data as part of the initial round of reporting in 2015.
FATCA programme teams will welcome the extra time the announcement gives them to prepare their firms for FATCA compliance. Some may even consider re-planning their delivery timetables or dropping their 2013 population data preparation. To do this would be a missed opportunity.
By continuing with the delivery activities already in progress to produce 2013 population data, firms have a chance to check how well they are handling the initial data challenges posed by FATCA. Taking the opportunity to prove key operations and functions now will ensure firms reap the benefits of efficient reporting in years to come.
In checking data handling, there are three key areas to focus on:
Assess the integrity of the dat
Validate the data quality throughout the production process, confirm successful aggregation where necessary, and confirm that FATCA status is reflected back into the source systems or data warehouse used.
Confirm the efficacy of the operating model for data production
Review and optimise processes used to produce the population, confirm the efficiency of the systems architecture, and refine organisational structures.
Test FATCA compliance
Confirm that US persons have been successfully identified in the population data by carrying out a series of detailed dip-tests across a cross-section of the customer base.
PA’s dedicated team of FATCA consultants has extensive experience of assuring and accelerating the delivery of FATCA and other regulatory change programmes across the financial services industry. Our independence, proven delivery capabilities and deep technical insight make us the right team to support successful FATCA delivery.
To find out how we achieve exceptional results from regulatory change, contact us now.