Banking software group Temenos said that a leading global wealth manager has signed for its new Foreign Account Tax Compliance Act (FATCA) module to ensure compliance across all of its global locations.
It added that complying with FATCA will be a major requirement for financial institutions, with the challenge being the vast amounts of information that must be compiled, verified and reported. The bank, a current user of Temenos T24 (T24) core banking application, helped to co-develop the solution and will become the first user to adopt the new FATCA module.
Temenos said that a number of existing T24 clients are currently evaluating this new module, which will be delivered in three phases to meet the regulatory requirements – client identification, withholding tax and reporting. The module can be deployed with minimal effort, with the first phase taking less than two weeks to implement.
“With FATCA becoming effective on 1 January 2014, financial institutions need to act now to ensure compliance,” said David Arnott, chief executive officer (CEO) of Temenos.
“Given the number of Temenos customers affected by the new legislation, we have moved quickly to develop the necessary functionality to enable all customers to comply and so remove this compliance pain point. We are delighted to have signed our first adopter, one of the biggest banks in the industry, who helped us to deliver a comprehensive solution able to meet the complex requirements of FATCA.”
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