FATCA - Introduction

FATCA - Introduction

FATCA is US legislation enacted by President Obama to prevent offshore tax abuses by US persons & ensures all account holders pay tax on their income.

FATCA is US legislation enacted by President Obama to prevent offshore tax abuses...

The Foreign Account Tax Compliance Act (FATCA) is U.S. legislation enacted by US Congress to prevent offshore tax abuses by U.S. persons. The FATCA rules are wide-ranging and force global financial institutions, investment entities, as well as national banks and other financial organizations to report details on their U.S. clients directly.

FATCA arrived at a time when financial institutions already faced a range of significant economic and regulatory challenges, testing many banks capability and capacity to deliver. The FATCA requirements introduce a series of business and systems requirements that are simple in concept, but maybe difficult and costly to operationalize. The aim for financial institutions is to meet the new compliance burden at a cost that is proportionate to the compliance risk faced.

KPMG firms are well placed to support you with FATCA; with over 50 FATCA client engagements being worked on by member firms around the world. We invested in proprietary training of over 300 KPMG financial services professionals with deep tax, forensic, IT systems, and programme management expertise on the FATCA requirements and business implications. Further we developed a range of automated tools designed to help clients quickly and accurately determine the potential impact and cost of FATCA on their businesses. Our FATCA Academy is accredited by former IRS professionals and is used by member firms’ clients to train their staff in-house.

We would be pleased to speak to you about how we can help you with FATCA. Contact us for more information at fatca@kpmg.com.