FATCA is a reality. Quidgest is deeply aware of this, and therefore has developed a FATCA solution, which assures compliance of foreign financial institutions and certain other non-financial foreign entities with the US Internal Revenue Service (IRS) requirements.
In order to be compliant with FATCA, financial institutions should modify their existing systems, customer identification and communication mechanisms, reporting procedures and withholding tax administration.
Banking Solutions Manager, João Teles, states: “All of this requirements emphasize the need for a robust and cost-effective solution that will help entities fulfil their obligations under the US Government while keeping the focus on their core business”.
He continues bringing out: “the leverage of an in-depth experience and deep expertise together with an extensive knowledge on global regulations and state of the art software technology, have become the main reasons why Quidgest can provide the best solution to assure compliance with FACTA and manage this process centrally”.
The launch of the new FATCA solution aims to help and ease organisations comply with the US IRS providing advanced tools for automatic verification of clients and payment documents against flexibly configured rules and schemes, their categorisation and due diligence.
In case of identification of US account holders or foreign entities in which US taxpayers hold a substantial ownership interest, the information on them is automatically reported to authorities. Quidgest is designed to help financial services institutions streamline processes for immediate as well as long-term compliance with FATCA.
This solution has already been implemented in financial institutions such as Banco do Brasil, which according Mr. Teles has been a total success enforcing bank transparency.
“Quidgest’s FATCA solution will add to the global effort against tax evasion and provide crucial clarity for financial institutions. This tool will help non-compliance countries which have trading and investing operations with the United States to continue doing so, avoiding being blacklisted”.
Trinidad and Tobago has recently summed up to the numerous countries which have reached agreement in substance with the US Treasury Department, becoming FATCA compliant.
The non-compliance of this agreement could not only result on civil and criminal penalties but also endanger the relationship with the US as stated by Former Finance Minister Minister Larry Howai, “FATCA compliance is critical for the continued interaction of our banks and other financial institutions with their counterparts in the US”.
