FATCA Service Bureau

Transcription

1 2013 Processing FATCA Service Bureau A comprehensive FATCA compliance solution for the fund industry US tax law expertise Client documentation review Electronic tax form validation Secure document hosting and provisioning Markit Counterparty Manager, FATCA Service Bureau is a comprehensive FATCA compliance solution for funds. It streamlines a fund s workflow for both FATCA and IRS Chapter 3 by validating all tax forms and documentation. Use the service to manage all your Know Your Customer (KYC) requirements, and focus more on your fund s bottom line.

2 Achieve FATCA compliance by using FATCA Service Bureau, a robust and cost-effective end-to-end solution. Use a single service to manage all your firm s KYC requirements, and focus more on your bottom line.

3 FATCA Background FATCA was enacted as part of the Hiring Incentives to Restore Employment Act. It is a major addition to US withholding tax obligations for both US and non-us firms. The new rules affect both the financial industry and US operating companies. Processing Markit Counterparty Manager FATCA Service Bureau FATCA imposes a new 30 percent withholding penalty on certain US payments made to non-compliant funds. To avoid the penalty, funds must identify their investors more thoroughly, even if they hold only non- US bank and securities accounts. \ 3

4 FATCA Service Bureau overview Markit and Compliance Technologies International (CTI) have developed a comprehensive solution for all non-us domiciled funds and structured investment vehicles that must comply with FATCA. The FATCA Service Bureau combines US tax law expertise, client documentation review, IRS registration, and tax form validation and reporting. All files for KYC and Chapter 3 compliance are hosted on Markit Counterparty Manager, a highly secure document hosting and counterparty provisioning environment. For the thousands of funds planning to register as a Foreign Financial Institution (FFI) under the regulatory requirements, FATCA Service Bureau provides the highest level of domain expertise and operational efficiency in a low-cost solution. FATCA Service Bureau benefits End-to-end solution takes on the full scope of FATCA compliance for the fund from classification and validation to registration and reporting Highest level of domain expertise and operational efficiency Electronic W-8 tax form validation and submission The service can also manage additional regulatory requirements using many of the same documents Connectivity to more than 60 dealers \ 4

5 FATCA Service Bureau on-boarding FATCA compliance in three steps Step 1: Classify Step 2: Register Step 3: Report Classify entity & investors under FATCA Tax form validation electronic & manual Global Intermediary Identification Number (GIIN) dissemination to counterparties Document collection & client gap analysis FFI Registration Compliant IRS report submission under FATCA FATCA Service Bureau workflow Achieve FATCA compliance by using FATCA Service Bureau, a robust and cost-effective end-to-end solution. Fund / FFI Counterparty Manager STEP 1 Fund authorizes Fund Administrator to share FFI entity documentation STEP 4 Fund Administrator re-solicits documents if necessary & process repeats STEP 5 FSB shares GIIN & other documents with counterparties to meet FATCA, Chapter 3, AML, & other requirements Fund Administrator FSB IRS STEP 2 Fund Administrator provides documents to FSB or gives FSB access to its documents STEP 3 FSB reviews & validates documents, requests additional documents if insufficient, and registers FFI with the IRS Legend Foreign Financial Institution (FFI) Any financial institution that is a foreign entity. Financial institution is defined as any entity that (i) accepts deposits in the ordinary course of a banking or similar business (ii) holds as a substantial portion of its business financial assets for the account of others or (iii) is engaged (or holding itself out as engaged) primarily in the business of investing, reinvesting or trading securities, partnership interests, commodities, derivatives (futures, options, forward contracts etc.) in such securities, partnership interests, or commodities. FSB FATCA Service Bureau \ 5

6 300,000+ Funds 10,000+ Banks, custodians, transfer agents 4,000+ Hedge Funds 4,000+ Private Equity Funds Financial institutions affected by FATCA \ 6

7 About CTI About Markit More Information CTI is the source for tax withholding and information return reporting compliance needs. CTI s sophisticated team of highly experienced international and domestic tax professionals range from lawyers and accountants, to software engineers and operations experts, located in Boston, Los Angeles, New York, Washington D.C. and London. CTI consistently delivers cuttingedge global tax technology, consulting, and outsourcing services specializing in tax withholding and information return reporting. Markit is a leading, global financial information services company with over 3,000 employees. The company provides independent data, valuations and trade processing across all asset classes in order to enhance transparency, reduce risk and improve operational efficiency. Its client base includes the most significant institutional participants in the financial marketplace. For more information on the products and services from Markit, please contact us at sales@markit.com or call one of our regional offices: London New York Amsterdam Boulder Dallas Frankfurt Hong Kong Tokyo Toronto Singapore Sydney markit.com \ 7

8 mines data, pools intelligence, surfaces information, enables transparency, builds platforms, provides access, extends networks, & transforms business. Markit makes no warranty, expressed or implied, as to accuracy, completeness or timeliness, or as to the results to be obtained by recipients of the products and services described herein, and shall not in any way be liable for any inaccuracies, errors or omissions herein. Copyright 2013, Markit Group Limited. All rights reserved. Any unauthorised use, disclosure, reproduction or dissemination, in full or in part, in any media or by any means, without the prior written permission of Markit Group Limited is strictly prohibited. 06/18/2013