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.

Solution objectives

  • New Account Onboarding – Enhance onboarding processes to accommodate due diligence, documentation/validation, and classification required under FATCA
  • Preexisting Account Due Diligence – Implement processes to perform diligent review of preexisting accounts in order to document and classify according to FATCA principles
  • Automate to maximum extent account due diligence

Solution deliverables

  • Integration with other IT platforms
  • Automated case creation
  • Account Scoping, Categorization, and Systematic Aggregation
  • Manual Aggregation by Relationship Manager
  • Electronic Search
  • Relationship Manager Inquiry
  • High value accounts documents review
  • Curing/Remediation of U.S. Indicia
  • Recording Document Validation Result and Classification
  • Monitor/ update account review
  • Classify Account
  • Management reporting
  • Automated information fulfillment