FFI FATCA Reporting - AML On-Line by CubeIQ Limited

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FFI FATCA Reporting

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FATCA was enacted in 2010 by U.S. Congress to target non-compliance by U.S. taxpayers using foreign accounts. FATCA requires foreign financial institutions (FFIs) to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest.
More information:
U.S. Internal Revenue Service
U.S. Department of the Treasury

Impact on Individuals
U.S. individual taxpayers must report information about certain foreign financial accounts and offshore assets on Form 8938 and attach it to their income tax return, if the total asset value exceeds the appropriate reporting threshold. Form 8938 reporting is in addition to FBAR reporting.
Information on FATCA for US Citizens that live and/or doing business outside US.
The document describes how US Citizens living or doing business outside US are affected by FATCA.
FATCA FAQs Document For US Citizens

Impact on Financial Institutions
Foreign Financila Institutions
To avoid being withheld upon, a foreign financial institution may register with the IRS, obtain a Global Intermediary Identification Number (GIIN) and report certain information on U.S. accounts to the IRS.
More information on:
IRS: Information for Foreign Financial Institutions
U.S. Financila Institutions
U.S. financial institutions and other U.S withholding agents must both withhold 30% on certain payments to foreign entities that do not document their FATCA status and report information about certain non-financial foreign entities.
More information on:
IRS: Information for US Entities

Impact on Governments
If a jurisdiction enters into an Intergovernmental Agreement (IGA) to implement FATCA, the reporting and other compliance burdens on the financial institutions in the jurisdiction may be simplified. Such financial institutions will not be subject to withholding under FATCA.
More information on:
IRS: Information for Governmental Entities

Foreign Account Tax Compliance Act Compliance Requirement Support
Prime® Compliance Suite makes Due Diligence Easier. We have subject matter expertise on the Foreign Account Tax Compliance Act (FATCA) and its requirements for both our U.S. and non-U.S. clients.

While FATCA is primarily a tax law, it intersects with Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. According to the IRS, your institution’s Know Your Customer (KYC) and Customer Identification Programs (CIP) may comply with the identification and verification-of-customers portion of FATCA.

The common theme of due diligence data collection in regulatory rulings makes Prime® Compliance Suite the perfect tool to help you meet current and future requirements.

Prime® Compliance Suite enables you to:

  • Manage and monitor your KYC/CIP data

  • Store documentation

  • Facilitate required electronic searches through our searchable database

  • Create customer acceptance items and set up ongoing review periods

  • Avoid potential penalties and negative press by remaining in compliance

FATCA Reporting on Prime® Compliance Suite
CubeIQ’s FATCA reporting module is an add-on to PCS™ FATCA enhanced EDD Reporter™ module and it is a full web based application with multiple functions such as:

  • Search (Menu Search/Search Customers): In the search page operator selects the types of customers to be included in FATCA report. The operator can select from the available options which are:  (a) Individuals, (b) Beneficiaries (Business), (c) All and then click the submit button. The application executes the search and then redirects to the results page.

  • Results (Menu Search/Search Results): In results page, the database search output is presented in a grid. Each grid entry is accompanied by a selection box. Operators can select which of the grid entries will be included in the FATCA report. From the available options which are: (a) One grid entry, (b) Multiple grid entries, (c) All entries and then clicks the submit button. The application executes the selection and then redirects to the report page.

  • Report (Menu Reports/Report Customers): In report page the operator can view the selected entries to be reported and generate the FATCA report for previously selected customers. When the operator clicks the submit button the application generates the FATCA report which is a set of XML type files.

  • Report History (Menu Reports/Report History): In report page the operator can view the generated FATCA reports with details on each report.

CubeIQ’s FATCA Reporting module has been developed based IRS’ FATCA XML v1.1 User Guide, Publication 5124 (6-2014), Catalog Number 65544H, Department of the Treasury, Internal Revenue Service specification document.
CubeIQ’s FATCA reporting module is available on Prime Compliance Suite – PCS™ version 9.1.0 and will be available with newer PCS™ versions. However it will not be available with any version prior to 9.1.0.

FATCA Reporting Module Menu Items
FATCA Report Generation Process

For more information about Prime® Compliance Suite and how it covers FATCA compliance requirement contact us.

AML On-Line by CubeIQ Ltd. :: www.cubeiq.gr

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