Dion Adds FATCA Check Service

Financial institutions (FI) software vendor Dion Global Solutions has launched a Foreign Account Tax Compliance Act (FATCA) TRAC Indicia check service to assist financial firms in making an initial assessment of the impact of the US supranational tax regulations on their business.

The group said that the launch followed the publication of the long-awaited final regulations for the implementation of FATCA by the US Treasury Department and Internal Revenue Service (IRS). Aimed at combating offshore tax evasion, FATCA has far-reaching implications for FIs around the world, requiring firms around the world to put compliance programmes in place to ensure required timeframes are met.

Dion added that the check service, built with the group’s outsourcing partner Mahindra Satyam, performs the required US indicia checks by taking a full or sub-set of client data, either in a pre-defined format or a format of the firm’s choice. This analysed data is provided to the firm as dashboards, offering visualisations of client categories and results. Firms can then drill-down into specific account details and interrogate any US indicia found.  Watch- lists and activity lists for accounts with US indicia are also produced for account, client and relationship managers to take any required remediation.

The information can then be used by the firm to construct and map their compliance programme, breaking it down into required tasks and activities, duration, effort, resource requirements and milestones. The service can either be hosted by Dion or in-house, with checks implemented either as a one-off or at regular intervals to determine the extent of FATCA compliance.


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