Capgemini, Pegasystems and DLA Piper law firm have partnered to offer a FATCA compliance solution to financial institutions affected by the upcoming regulations.
From Jan. 1 2013, foreign financial institutions will be required to determine if an account is owned by a US person, report data on the account to the US Internal Revenue Service (IRS) and possibly withhold or pay over to the US a 30% tax on “withholdable payments.”
“Many firms have re-evaluated their existing KYC programs due to FATCA, given the high costs anticipated at around $100 million to $200 million to become compliant,” said Reetu Khosla, director of Risk, Fraud and Compliance at Pegasystems, the provider of KYC software solutions. “Organizations are looking for a complete view of their customers to drive faster time to revenue in the on-boarding process. Institutions are addressing ever-growing regulatory demands by choosing a unified platform, such as Pega’s KYC solution, that is agile enough to ensure compliance to existing regulatory policies that are country, product and line of business specific. By partnering with Capgemini and DLA Piper, clients will get a complete software and services offering to ensure timely and specialized FATCA compliance.”
Through this joint offering, Capgemini Financial Services and Pegasystems will work with financial institutions to coordinate their systems’ interface with Pegasystems technology and install customized legal advice developed by DLA Piper in the software. Capgemini and DLA Piper will review financial institution data, advise clients on FATCA due diligence, reporting and withholding requirements and ensure compliance with FATCA regulations.
(JDC)