Impact of FATCA on financial institutions
FATCA is one of the most far-reaching tax legislation to impact financial institutions globally. FATCA compliance is complex and time consuming, and requires co-ordination of several business lines and geographies. In addition, timing is of utmost importance and deadlines are fast approaching. Its time FFIs began their due-diligence procedures to review individual accounts. The focus is on rapid deployment at reduced compliance costs. Allocating adequate resources to plan, choose and deploy a comprehensive FATCA solution will help reduce risks and costs significantly, and streamline deployment. FFIs should seek to develop robust technology platforms and reporting systems that not only cater to FATCA requirements, but that are also adaptable to any future regulations.