GoldenSource has entered into a strategic alliance with Compliance Technologies International (CTI), a supplier of tax withholding and compliance software, to developed an end-to-end Foreign Account Tax Compliance Act (FATCA) solution for financial institutions.
Under the partnership, GoldenSources existing EDM platform will act as the master customer data platform while the CTI E-W8 system will automate the solicitation, collection, validation and maintenance of U.S. tax forms, including W-8 and W-9 and Self Certification/KYC details.
GoldenSource will deliver customer data to the CTI E-W8 system, then E-W8 will automate the tax portion of the account opening process while simultaneously achieving FATCA compliance.
Customers of the platform then receive confirmation that their application complies with Internal Revenue Services (IRS) requirements as a memorandum of understanding from the tax authority.
The solution also can search clients KYC, CRM and on-boarding systems to identify customers regarded as U.S. citizens according to IRS criteria. An individuals holdings can then be aggregated across account hierarchies and investment vehicles, matched across multiple banking systems and platforms to calculate the definitive holding total for that individual.
We did our homework to validate that GoldenSources rich-data model can manage the data required for an institution to comply with FATCA, says Neill Vanlint, managing director at GoldenSource, EMEA and Asia. The CTI E-W8 system is the perfect complement in supporting seamless submission of that data.
Vanlint says the offering extends the firms on-boarding capability or can be deployed as a stand-alone FATCA repository alongside any client management system.
CTI is pleased our mutual clients will be able to bridge their legacy data seamlessly with our validation tools to ensure they will be FATCA compliant while simultaneously having the ability to monitor in real time any changes in circumstances, says Cyrus Daftary, executive at CTI. Managing the data integration can be one of the most time-consuming tasks facing today’s financial professionals. GoldenSource solves this by ensuring CTI’s solutions work as a seamless end to end solution.
Certain provisions of FATCA recently were delayed by the IRS. FATCA will go into full effect in January 2014.
(CG)