The Foreign Account Tax Compliance Act (FATCA) recently applied by the US, addresses the avoidance of tax by U.S. persons overseas and places a heavy burden of tax reporting and compliance onto financial institutions.
This new law requires financial firms to implement considerable enhancements to their processes and systems relating to the collection and reporting of client information.
Dany Nassar, Head of Compliance at Bank of Beirut, said, “Regulatory compliance is a vital component for firms operating in today’s global financial markets. Ensuring internal systems and controls are in place to support compliance is a high priority for us. We believe that FATCA TRAC provides us with the most effective tool to comply with FATCA at a group level.”
Colin Camp, Managing Director – Products & Strategy at Dion, said, “Having to comply with the new FATCA regulations is causing considerable issues for financial firms in the region. We are delighted that Bank of Beirut has chosen to be the first Lebanese bank to implement our compliance solution. Together with our partner, IDOM Middle East, we will assist Bank of Beirut to become FATCA compliant in the most effective and efficient manner.”
FATCA TRAC is a comprehensive FATCA compliance solution covering all aspects of FATCA – from classification to reporting and payment. Its modular design enables firms to deploy only the elements they require, integrating with proprietary or third party systems where appropriate. Key elements of FATCA TRAC are:
•Highly-configurable engine with a pre-defined set of rules to incorporate existing KYC processes
•Data management store with powerful search and data aggregation capabilities
•Case management to monitor client correspondence and reporting queries
•Fully interoperable payment module to withhold tax calculation
•Dialogue with the reporting authority, clients and management information systems
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