Oracle Financial Services (Oracle) has introduced a new management technology solution to help financial institutions prepare for Foreign Account Tax Compliance Act (FATCA) provisions that come into effect in 2014.
The solution aids account holder registration, categorisation, due diligence and reporting and is designed to help financial services institutions streamline processes for immediate as well as long-term compliance with FATCA.
It has also been developed to minimise any impact on existing information technology infrastructure.
"With FATCA slated to begin to go into effect in 2014, financial institutions around the globe realise they must begin to take action now to prepare for compliance," said Oracle's analytical applications group vice president and general manager, Subramanian Ramakrishnan.
"They are looking for solutions to streamline the compliance process with minimal impact on their existing IT environment. Oracle designed Oracle Financial Services Foreign Account Tax Compliance Act Management to these exact specifications, using Oracle Financial Services Analytical Applications Infrastructure, a common data model, and best practice capabilities to facilitate short- and long-term compliance," he said.
Under FATCA, all financial institutions must classify account holders as either US-based or non-US-based and report directly to the United States Internal Revenue Service specific information about financial accounts held by US taxpayers or by foreign entities in which US taxpayers hold a substantial ownership interest.
The new act will require organisations to analyse existing customers, update customer information and 'onboarding' processes and expand reporting capability.
Oracle Financial Services Foreign Account Tax Compliance Act Management consolidates FATCA-specific data in a single repository to provide an enterprise-wide view of customers and enable banks to manage the compliance process centrally.
In late December, commercial law firm King & Wood Mallesons warned that the Australian financial services industry needs to begin preparing to comply with FATCA.
