FATCA compliance a major requirement for financial institutions, Temenos
A global wealth manager has become the first adopter of the Foreign Account Tax Compliance Act (FATCA) module released by Swiss banking software provider Temenos, in order to ensure compliance across all of its global locations.
“Complying with FATCA will be a major requirement for financial institutions, with the biggest challenge being the vast amounts of information that must be compiled, verified and reported,” Temenos said.
The new client is already a user of Temenos T24 core banking application, and helped to co-develop the solution and will become the first user to adopt the new FATCA module.
According to Temenos, a number of existing T24 clients are currently evaluating this new module, which will be delivered in three phases to meet the regulatory requirements: client identification, withholding tax and reporting.
“With FATCA becoming effective on 1 January 2014, financial institutions need to act now to ensure compliance. Given the number of Temenos customers affected by the new legislation, we have moved quickly to develop the necessary functionality to enable all customers to comply and so remove this compliance pain point. We are delighted to have signed our first adopter, one of the biggest banks in the industry, who helped us to deliver a comprehensive solution able to meet the complex requirements of FATCA,” said David Arnott, chief executive officer at Temenos.