FATCA and Financial Services. Are you prepared? What is your plan?
Shaku Selvakumar 060001XT47 firstname.lastname@example.org | | Tags:  ibmimpact bizagility foreign websphere foreign_account_tax_compl... flexible compliance business_agility tax fatca services financial_services
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Contributed by Cecile Poyet, WebSphere Marketing Manager
In case you’re unfamiliar, FATCA stands for Foreign Account Tax Compliance Act. Or, in other words, your current nightmare if you happen to lead a financial services organization. The whole financial services sector is affected by this new regulation as U.S. tax authorities extend the requirements of reporting and due diligence globally. If you’re a financial services executive, what does FATCA mean for your business and how do you manage it?
First, FATCA requirements are affecting the whole value chain of banks, not just the areas of tax withholding or reporting. As a result, an iterative approach is needed to manage the impact of these requirements. An approach that involves:
Second, decision management will be a critical enabling technology and business approach for managing FATCA. In fact, it’s really the only way to efficiently screen the hundreds of thousands of attributes related to clients, accounts and transactions and generate automatic reports. Plus, and this is a big plus, it allows you to make changes quickly and safely. This is important because the FATCA is not final yet.
Over the months to come, the U.S. government will fine-tune FATCA; making some changes. Does that mean that your organization should wait before implementing a compliance solution? Not unless you want a recurring nightmare. For the least amount of pain, you should start building robust but flexible applications that can adapt to change rapidly and at the lowest possible cost. And, without bias, decision management provides the best approach and capabilities to manage the volume and velocity of change required in this event.
To hear more about how IBM solutions can help you address FATCA and more, visit our informative FATCA page or join us at the Impact 2013 Conference in Las Vegas, NV, April 28th through May 2th. Impact gives you the opportunity to:
Attend Impact 2013 and meet subject matter experts, listen to customer success stories and visit the Industry Zone at the Solution Center.
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