FATCA is US legislation enacted to prevent offshore tax abuses by US persons & ensures all account holders pay tax on their income.
FATCA is US legislation enacted to prevent offshore tax abuses...
The Foreign Account Tax Compliance Act (FATCA) is US legislation enacted by US Congress to prevent offshore tax abuses by US 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 US 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.
Some of the areas that differentiate KPMG’s approach to FATCA include:
- Industry knowledge
You can benefit greatly from industry insight and sector-specific knowledge when embarking on FATCA integration. KPMG is a leading service provider to the financial services industry and brings this aggregate knowledge to bear on each FATCA project.
- Scalable methodology and process
FATCA integration involves implementing change that affects your people, processes and systems. KPMG has established and applied FATCA-related methodologies to help measure, design and implement change in a manner tailored to your business.
- An integrated, cross-functional approach
FATCA engagements require the involvement of professionals from many disciplines. KPMG uses a multidisciplinary, sequenced approach—combining subject matter knowledge in, for example, tax, anti–money laundering (AML) and “know your customer” (KYC) requirements, advisory and project management, and IT systems—to help your business achieve end-to-end FATCA integration.
- A strong understanding of the FATCA regulations
A thorough understanding of the FATCA rules and requirements is essential to successful FATCA integration. Our FATCA team includes preeminent FATCA tax professionals, with access to our member firms FATCA teams to help ensure that technical complexities are identified and resolved.