Markit and CTI launch FATCA Service Bureau
Financial information provider Markit and Compliance Technologies International (CTI) have launched the FATCA Service Bureau, a new service designed to help financial institutions to comply with the Foreign Account Tax Compliance Act.
The FATCA Service Bureau combines the capabilities of Markit Counterparty Manager and CTI’s specialised tax validation and reporting systems to offer a document management solution which includes automated tools for Internal Revenue Service (IRS) registration and e-tax form submission.
Services are aimed at thousands of funds and other financial institutions required to register as a Foreign Financial Institution (FFI) under FATCA requirements.
FATCA requires FFIs invested in US assets to document their clients such that they can affirm to the IRS that they are not aiding US persons in evading US taxes.
It further requires FFIs to report the identities of their US investors and report financial information each year to the IRS. It is estimated that the law will impact over 300,000 financial institutions and their funds across virtually every asset class.
The FATCA Service Bureau will perform all aspects of FATCA compliance on behalf of its customers as a fully- outsourced service provider, including the determination of correct FATCA classification, gap analysis on account documentation and the generation of withholding statements and blended withholding rates for Chapter 3 requirements.
“FATCA compliance is another process-intensive requirement placed upon the financial industry that demands an automated solution. Combining the know-your-customer functionality, document management and reporting tools offered by Markit with CTI’s unparalleled domain expertise gives the global fund industry an efficient way to manage FATCA compliance,” said Jeff Gooch, managing director and global head of processing at Markit.
Cyrus Daftary, co-founder and executive director at CTI added: “Working with Markit to expand our outsourcing operations into the FATCA Service Bureau makes it easy for funds and financial institutions to have their FATCA compliance needs met by our team of experts. We focus our attention on their FATCA compliance needs, so these institutions can focus on their business.”