Siron®FATCA: Reporting Factsheet FATCA Reporting It is the objective of the “Foreign Account Tax Compliance Act” (FATCA) to identify all U.S. taxpayers worldwide and levy taxes on their income. The introduction of a 30% withholding tax on U.S. revenues for non-cooperative institutions is an effective means for the enforcement of FATCA. TONBELLER has been offering a solution for FATCA identification and classification since the beginning of 2013. In response to the final specification of the reporting requirements in 2014, TONBELLER now offers a tailor-made FATCA reporting solution. Fit for Future Requirements Though FATCA is part of the “Hiring Incentives to Restore Employment Act” (HIRE Act), effective as of 2010, only the latest changes of the reporting requirements in June 2014 and the new registration portal for foreign financial institutions (FFIs) have laid the foundations for its operational realization on a global scale. The FATCA act has an enormous international impact. In February of 2014, the OECD published a global standard for the exchange of tax-relevant data established in close collaboration with the G20 states and the European Union. This “Common Reporting Standard” (CRS) follows the information obligations stipulated by FATCA and uses the same dataexchange format. As early as 2016 or 2017, financial institutions are likely to become obliged to collect CRS-based data and report it to the tax authorities. At present, there are two FATCA reports: 8966 and 1042-S. Adjustments are likely if reporting requirements are extended or formats updated. This applies especially to the 1042-S report representing an older data-exchange format. Siron®FATCA: Highlights at a Glance Complies with the statutory FATCA requirements for reporting to the IRS or national authorities (e.g. according to IGA 1 + IGA 2) Audit-proof data preparation, report creation and sending Straight-forward adjustment of predefined reporting templates Easy extensibility of reporting options for customization or national requirements Numerous research and administration options, clear user guidance Easy integration of Siron®FATCA with existing infrastructures for fast implementation of FATCA requirements Extensible solution for future reporting requirements of the OECD (CRS) Flexible adjustment to IGA 1 + IGA 2 Data preparation from any data source Siron®FATCA supports reporting to the IRS or national tax authorities. Requested information, e.g. U.S. customer data, balances or revenues from FATCA-relevant and recalcitrant business contacts can be securely forwarded in full compliance with data-protection regulations. Siron®FATCA not only covers the requirements for FATCA reporting. Siron®FATCA is also CRS-ready and lays the foundations for compliance with the OECD guidelines. For further information www.tonbeller.com FATCA Reporting Reporting Arrangements Security and Traceability FATCA reporting requires lots of information that cannot be generated by the software solution alone. This makes it necessary to extract data from various sources (e.g. corebanking solution, CRM). Siron®FATCA includes this information thus providing the perfect reporting data pool. Regardless of whether version, editor or history information is needed: all relevant processes are logged and stored in an audit-proof manner and can be viewed in the user interface or retrieved as a report. Report Creation Templates containing the reporting format and contents are the starting point. These templates can be adjusted and saved as preconfigured reports. Handling is easy, no programming skills are required for adjustments. A workflow guiding users through the process supports the creation of the reports. Apart from the standard reports (forms 1042-S and 8966), other reports may be added, e.g. to cover national reporting requirements or internal reporting needs. Before releasing the reports, tests can be made, e.g. for completeness (pending customer cases, etc.). For traceability reasons, all reports are created and stored together with the underlying data pool. Reports may be accessed online. Further research is possible, for instance, you can retrieve the data of a customer and send it to the customer as a document. Selected changes can be subjected to dual control. The user administration specifies the permissions of the users and complies with data protection regulations. Preview – Further Development With Siron®FATCA, financial institutions are perfectly equipped to meet the challenges of the new OECD directives. The future will see many reporting variants for numerous bilateral agreements. The highly flexible solution is easy to adjust and may cope with a large number of potential reports (apart from U.S. FATCA) and any number of addressees. This guarantees maximum security of investment in this field. Integration with Siron® Anti-Financial Crime Solutions TONBELLER customers who already work with Siron®AML or Siron®KYC can fulfill the statutory FATCA requirements with minimal effort. The predefined rules for the identification of FATCA-relevant customers and accounts can be integrated with the screening for customer acceptance (Siron®KYC) and with continuous close monitoring (Siron®AML). Sending Reports Reports may be sent to any number of addressees. The transfer protocol is stored for each of them. The default protocols are FTP and SFTP. Should other protocols be used by some countries, these can be included in Siron®FATCA. TONBELLER AG Werner-von-Siemens-Str. 2 ■ 64625 Bensheim, Germany Phone: +49 6251 7000 - 0 ■ [email protected] www.tonbeller.com TONBELLER (Asia) Pte. Ltd. 229 Mountbatten Road ■ #02-41 Mountbatten Square ■ Singapore 398007 Phone: +65 31 57 33 73 ■ [email protected] www.tonbeller.com © TONBELLER AG: All rights reserved
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