• Online KYC Remediation Platform - FATCA Case Study

    The Foreign Account Tax Compliance Act (FATCA) is a 2010 United States federal law to enforce the requirement for United States persons including those living outside the U.S. to file yearly reports on their non-U.S. financial accounts to the U.S Inland Revenue Service via domestic tax authorities.

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Online KYC Remediation Platform

Foreign Account Tax Compliance Act (FATCA) – Case Study

FATCA was enacted in 2010 by the United States Congress to target non-compliance by U.S. taxpayers using foreign accounts. FATCA requires foreign financial institutions (FFIs) to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. FFIs are encouraged to either directly register with the United States Internal Revenue Service (IRS) to comply with the FATCA regulations (and FFI agreement, if applicable) or comply with the FATCA Intergovernmental Agreements (IGA) treated as in effect in with over 110 jurisdictions.

FATCA requires FFIs to comply with a detailed and complex set of requirements including customer due diligence for existing and new customers and financial reporting on certain account holders, where aggregate balances in reportable financial account products exceeds the reportable thresholds to domestic tax authorities, which under reciprocal IGA’s, will be shared with the U.S. IRS.

In complying with FATCA requirements, FFI’s are required to undertake customer and account level segmentation and perform internal and external data searches in an attempt to classify the account holder for FATCA purposes.  Despite best efforts to achieve this systematically, it is inevitable that many FFI’s will have to contact account client’s directly to obtain a self-certification, essentially a declaration of their tax residency status.

In many cases, FFI’s have tens of millions of customers and even more actively held accounts and even if <0.5% are identified as potential U.S. account holders, even a subset of these that are unable to be identified systematically presents a major challenge to obtain this self-certification manually, which is where the Online KYC Remediation Platform can deliver huge time and cost savings by automating this process.

How it works – complete FATCA KYC remediation in 5 easy steps!

Prepare KYC Form

We have a comprehensive library of FATCA forms, the example below is taken from the Financial Services Council (FSC) / Financial Planners Association (FPA), which is the default industry standard in Australia for AML and FATCA.

The ezyKYC Remediation Platform comes pre-loaded with industry standard templates for AML, FATCA and CRS although any PDF form can be uploaded into the platform and used to perform remediation activities.

Business Account holders can select the form from the library and in ‘design’ mode modify the PDF, for example adding company logos or adding additional fields before saving this within the ezyKYC Remediation Platform.

Source Client Data

From the form library, business account users can download the file schema relevant to the selected form to be populated from core banking systems to capture known information from clients, such as their full name, date of birth and address details.

The information that is uploaded into the CSV form will be automatically be populated in the respective form using the Batch process within the Administer section of the ezyKYC Remediation Platform.

The ezyKYC Remediation Platform comes pre-loaded with industry standard templates for AML, FATCA and CRS although any PDF form can be uploaded into the platform and used to perform remediation activities.

Business account users can then click on the Batch tab within the Administer function and locate the CSV file containing customer data that is to be populated into the relevant PDF form. Using this batch feature thousands of PDF forms can be populated in minutes and then distributed to end clients using a streamlined workflow engine.

Distribute Form

Prior to distributing the populated form business account holders can also create a customised email template which is allocated a unique reference identifier, to be populated in the ‘FormID’ field of the CSV file prior to uploading, which will automatically send the populated PDF file with the allocated email template to the end customer.

Business account users can differentiate the customised email templates for different customer types, different form types or different stages in the process, for example, once the form has been reviewed and approved, or alternatively a standard rejection email notification template, which rapidly accelerates the KYC remediation process.

The client will receive a unique URL link inviting them to login and complete the designated form.

There are also email alert notifications at every step in the process, including a notification back to the business account holder when a form has been returned, an email notification to the end user once a form has been reviewed and either rejected or approved so that everyone is informed at each step in the process.

Once the client clicks on the email link they will be directed to the form that should be completed. They can then add, amend or edit any details on the form before digitally signing the form, saving and returning back to the company that requested the form.

Review Completed Form

All forms that have been returned to the requesting company will be directed to the Review folder, where the company can review and either approve the form which is the end of the process or alternatively they can reject the form, giving a reason and returning the form using a pre-configured email template.

Business account users can then click on the Batch tab within the Administer function and locate the CSV file containing customer data that is to be populated into the relevant PDF form. Using this batch feature thousands of PDF forms can be populated in minutes and then distributed to end clients using a streamlined workflow engine.

Analyse Responses

Business account holders can view the real-time operational dashboards which provides meaningful insights on remediation activities at different stages of the life-cycle, which are fully drillable to reveal the KYC forms underlying each segment of the dashboard.

The ezyKYC Remediation Platform contains a series of real-time dashboards that allows the status of all KYC remediation forms to be tracked and managed, through every stage of the workflow including:

  • Forms issued but not completed
  • Forms completed and awaiting review
  • Forms delivered but unread by client
  • Forms completed, reviewed and approved
  • Forms completed, reviewed but rejected (including counts)

The dashboards are fully drillable, enabling the user to reveal the underlying KYC remediation forms for any segment at the click of a button.

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The ezyKYC Remediation Platform is powered by FormsBox (c) 2012-2016.

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