The Foreign Account Tax Compliance Act (FATCA) was enacted by the U.S. Congress to prevent offshore tax abuses by U.S. persons. The final FATCA regulations are wide-ranging and will require global financial institutions, investment entities and insurance companies to report details on their U.S. clients directly to the Internal Revenue Service (IRS). Nonfinancial foreign companies with cross-border payments may also have FATCA-related reporting requirements. Noncompliance risk is substantial, including a punitive 30-percent withholding tax, penalties and interest, and reputational damage.
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FATCA arrives at a time when financial institutions already face numerous significant economic and regulatory challenges, testing many organizations’ capability and capacity to manage change. The FATCA requirements introduce a series of business and systems requirements that appear simple in concept, but may be difficult and costly to operationalize. The aim for organizations affected by FATCA will be to meet the new compliance burden, while managing the associated compliance costs and risks.


On January 17, 2013, the U.S Department of Treasury and Internal Revenue Service released the final regulations. FATCA is set to be phased in beginning July 1, 2014. Compliance is mandatory and the work involved will be complex, far-reaching, and costly. Adopting an efficient, strategic, approach to FATCA is essential. .


Integrating FATCA Into Your Business Environment


With a thorough approach to the challenges posed by FATCA and extensive FATCA-related project experience, KPMG professionals are well positioned to support your preparations to meet the deadlines and integrate successfully FATCA into your business environment.


  • Industry knowledge. You can benefit greatly from industry insight and sector-specific knowledge when embarking on FATCA integration. KPMG is a leading service provider to the financial services industry and brings this aggregate knowledge to bear on each FATCA project.
  • Scalable methodology and process. FATCA integration involves implementing change that affects your people, processes and systems. KPMG has established and applied FATCA-related methodologies to help measure, design and implement change in a manner tailored to your business.
  • An integrated, cross-functional approach. FATCA engagements require the involvement of professionals from many disciplines. KPMG uses a multidisciplinary, sequenced approach—combining subject matter knowledge in, for example, tax, anti–money laundering (AML) and “know your customer” (KYC) requirements, advisory and project management, and IT systems—to help your business achieve end-to-end FATCA integration.
  • A strong understanding of the FATCA regulations. A thorough understanding of the FATCA rules and requirements is essential to successful FATCA integration. Our FATCA team includes preeminent FATCA tax professionals, including former IRS professionals who remain in active dialogue with industry participants and current IRS FATCA rule drafters to help ensure that technical complexities are identified and resolved.