The US Foreign Account Tax Compliance Act (FATCA) requires Financial Institutions the world over to identify and report offshore accounts and investments held by “US Persons” and “US Owned (legal) Entities” to the US Internal Revenue Service.
This sweeping act has rigorous deadlines and requires many financial institutions to gather new information on controlling interests and beneficiary ownership, analyse such owners for US indicia (persons and entities) and verify and report such persons and entities or acquire and retain evidence of exemption.
Financial Services firms the world over are scrambling to understand the requirement, scope their exposure and plan their response. Many of these activities will need to be carried out within a firm’s Know-Your-Customer function - the centrality and importance is clearly indicated in the FATCA notices 2010-60 and 2011-34.
Who is a US Person? What is a US Owned Entity? What is an Active or Passive NFFE?
Many financial institutions lack a single view of their customers, have inconsistent documentation and account categorisation standards and do not have central operations groups.
Even advanced financial institutions, having implemented risk-based AML/CTF policies, will find that they now lack the entity information, ownership (and subsidiary) granularity required (Controlling Interests and UBOs with "signifcant ownership"; NFFE subsidiaries), have out-of-date information or simply lack the (non-AML/CTF) additional information that FATCA requires.
Not many organisations have the capacity or capability in-house to analyse customer portfolios, gather such information or conduct the higher-level customer contacts that are necessitated by FATCA evidence demands.
On behalf of our clients, Equiniti KYC Solutions conducts controlling interest discovery on passive NFFEs using a range of official sources to identify and verify such relationships. We perform closely monitored contact and where prudent, retrieve any FATCA required tax certification and statements.
US Persons Campaigns
Equiniti KYC Solutions' System is designed to allow for Campaign Management - the contact process by which suspected US Persons will be asked to declare their status.
W8 forms can be configured and suspected US persons given temporary access to make their statement and upload evidence in a secure and confidential portal session. Reminders and escalations are all defined, triggered, repeatable and auditable.
Equiniti KYC Solutions, the world’s first KYC-as-a-Service firm, is uniquely positioned to help
Our experienced people have the skills required to quickly and completely determine Active and Passive NFFE statuses, identify ownership and subsidiaries, analyse indicia and contact and re-contact parties to gather evidence and certification.
Our processes are optimised to plan, execute, measure and report comprehensive analysis and customer contact operations.
Equiniti KYC Solutions' technology provides an easy-access and transparent reporting platform to manage task assignment, analysis quality and project progress.