The Foreign Account Tax Compliance Act (FATCA) is a complex and comprehensive set of rules set out by the US Inland Revenue Service (‘IRS’) designed specifically to limit tax evasion by US persons.
FATCA will impact most banks, investment management/administration companies, trust companies and life insurers globally. In order to become compliant, financial institutions will need to review their customer on-boarding processes, make changes to their withholding and reporting engines and remediate millions of customer accounts globally.
The FATCA rules are already very complex and the fact that the regulations will be fluid up to and beyond the first deadline of 30 June 2013 simply exacerbates the problem for ‘Foreign Financial Institutions’ (FFIs) impacted by FATCA.
For this reason it will be critically important for local FFIs to understand those provisions in the draft regulations that are most likely to be revised and those which are not – this way unnecessary work can be prevented.
At KPMG we believe the best way to cut through the FATCA complexity is to use a methodology that mirrors the development of the regulations over three phases:
(1) Impact assessment and high level design
(2) Detailed design and implementation
(3) Governance and embedding the change.
If you are one of the many local businesses affected by FATCA we can help you by providing a bespoke service which is tailored to your needs.
Our services range from project managing the entire process on your behalf right through to providing technical advice on a specific aspect of your project.
To access slides from the Guernsey FATCA seminar held on
Thursday 23rd February 2012
please access here
To access slides from the Jersey FATCA seminar held on
Tuesday 28th February 2012
please access here
There is more information on this short video or download our latest guide which sets out what you should be doing now to prepare for FATCA.