Banking: FATCA due diligence solution
- The purpose of FATCA is to “detect, deter and discourage offshore tax evasion” by U.S. citizens or residents. Major functions impacted are: Client on-boarding; Tax reporting; Tax withholding; Governance.
- FATCA imposes a 30 percent withholding tax on “withholdable” and “foreign passthru” payments made to non-compliant parties.
- FATCA brings changes to FFIs and US withholding agents across the globe and requires extensive systems and process changes to meet FATCA requirements. Key stakeholders, including operations, technology, risk, legal, and tax need to be aligned to successfully comply with this complex law.