Successful FATCA Compliance for Banks and Insurance Companies | FICO TONBELLER

Successful FATCA Compliance for Banks and Insurance Companies

New Siron®FATCA Software by TONBELLER AG. Bensheim, January 29 – TONBELLER AG, a global leader of integrated solutions for governance, risk & compliance, presents its new software Siron®FATCA for a successful and fast implementation of FATCA compliance at banks and insurance companies. The innovative solution that integrates seamlessly with IT environments helps financial service providers quickly comply with IRS FATCA regulations aiming at tax withdrawals. Through its flexible rule set, Siron®FATCA complies with both FATCA and the IGA requirements. The reporting component enables secure data transfer to the IRS or to national tax authorities. Siron®FATCA will first be presented during international roadshow in Vienna (29.1.), Frankfurt (31.1.), Luxembourg (6.2.), and Singapore (27.2.).

FATCA Requirements
In 2014, the Foreign Account Tax Compliance Act (FATCA), which aims at an improved combating of offshore tax evasion, enters into force. The act obliges the financial industry to distinguish U.S. persons from non-U.S. persons, gather relevant data and – where applicable – levy a 30% withholding tax on U.S.-based or non-U.S.-based revenue. With Siron®FATCA, TONBELLER provides a suitable solution for compliance with the FATCA requirements.

Extended Identification for Existing Customers
FATCA requires that the entire customer base of a financial institution be checked for U.S. tax relevance and forwarded to the U.S. tax authority. For all customers, there must be unequivocal evidence that they are subject to U.S. tax law. To this end, the IRS provides a catalog of scenarios that can be used to identify U.S. taxable persons. The catalog includes these scenarios: U.S. citizenship, place of birth, residence, correspondence or postal address in the U.S., standing orders to an account in the USA, etc. These check criteria are part of the rules specified in Siron®FATCA. The solution can also be used by the specialists to customize the check rules to ensure quick reaction to future legislative amendments.

During the screening, Siron®FATCA matches all customer and account data from private persons with the rules and distinguishes relevant from non-relevant FATCA information. Furthermore, the interface to the Orbis database of Bureau van Dijk ensures that an organization's beneficial owners are automatically considered. Persons or companies whose data is found to be relevant are automatically transferred to the integrated case management.

Classify New Customers According to FATCA Requirements
To categorize new customers in accordance with the FATCA regulations and report them to the U.S. tax authority and other national authorities, it is essential that internal processes and systems be adjusted. The intensified customer acceptance process, which includes the identification of individual accounts held by U.S. persons, is also based on IRS check criteria and check rules of other institutions. For legal entities, the legislator demands that all beneficial owners are checked for U.S. tax liabilities whose share in a company is beyond 10%. Customer data may be entered in Siron®FATCA and checked automatically according to the predefined rules. The interface to the Orbis database of Bureau van Dijk detects beneficial owners of legal entities automatically. With Siron®FATCA, TONBELLER offers an out-of-the-box solution that can be integrated easily with the existing account opening process.

Workflow-Driven Case Management
Natural and legal persons, who are found to be FATCA-relevant during the new customer or existing customer screening are shown in Case Management as separate FATCA cases and may be processed by the specialist departments. The generation of a FATCA case triggers a defined workflow. The responsible customer advisors are requested to ask their customers to provide the documents/forms (e.g. W-8BEN, non-US passport) required by the IRS. Siron®FATCA disposes of integrated document tracking that monitors deadlines through parameters and thus enables escalation management. It also monitors the validity of documents and informs the customer advisors when relevant FATCA documents are to be requested from the customers once again.
Once the specialist department enters the FATCA status in Siron®FATCA, it is automatically forwarded to third-party systems (e.g. core banking system) through available interfaces. All check results, actions, and decisions are logged by the system and can be revised by internal and external auditors at all times.

FATCA Reporting
Siron®FATCA ensures electronic and secure reporting to the U.S. tax authorities or national tax authorities. Required data, e.g. the customer data, balances, revenues from FATCA relevant and recalcitrant business contacts are forwarded to the IRS and national authorities in full compliance with data-protection regulations.

TONBELLER is a leading global provider of integrated solutions for governance, risk & compliance. Based on the Siron® product family, TONBELLER AG develops and implements standardized and individual solutions against financial and white-collar crime and for risk management and monitoring, analysis, and reporting. This expertise helps organizations comply with regulations in accordance with the company's strategy and its efficient risk management and secures competitive advantages. The combination of innovative software technology, state-of-the-art consultancy and customer support, creates high-performance GRC applications that prove their efficiency at more than 1000 customers from the most stringently regulated industries. The global partner network makes TONBELLER solutions and expertise available in over 50 countries.