To help financial institutions prepare for Foreign Account Tax Compliance Act (Fatca) provisions that will begin to go into effect in 2014, Oracle today introduced Oracle Financial Services Foreign Account Tax Compliance Act Management.
Under FATCA, all financial institutions - U.S. domestic and foreign - must classify account holders as either U.S. or non-U.S. based and report directly to the United States Internal Revenue Service specific information about financial accounts held by U.S. taxpayers or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. It will require organizations to analyze existing customers, update customer information and onboarding processes and expand reporting capabilities.
Oracle's comprehensive solution for account holder onboarding and categorization, due diligence and reporting helps financial services institutions streamline processes for immediate as well as long-term compliance with FATCA, while minimizing impact to their existing information technology infrastructure.
Oracle Financial Services Foreign Account Tax Compliance Act Management consolidates FATCA-specific data in a single repository to provide an enterprise-wide view of customers and enable banks to centrally manage the compliance process.
By leveraging best practices for due diligence ‒ across anti-money laundering, Know-Your-Customer requirements, operational risk and regulatory reporting ‒ along with Oracle's industry-leading compliance architecture, the solution can help reduce risk and accelerate organizational readiness.
Using the new platform, financial institutions can seamlessly add new accounts and efficiently manage current accounts ‒ collecting information required under FATCA. In addition, pre-configured and validated account categorization, indicia and existing account review rules, as well as audit trail capabilities and reporting templates facilitate compliance processes.
Oracle Financial Services Foreign Account Tax Compliance Act Management easily integrates with existing Oracle and third-party applications using standard batch interfaces, helping to accelerate time to deployment and and optimize a bank's existing technology investment.
The solution is built on the industry-leading Oracle Financial Services Analytical Applications Infrastructure and leverages a common data model, built specifically for the financial services industry, to support compliance solutions.
"With FATCA slated to begin to go into effect 2014, financial institutions around the globe realize they must begin to take action now to prepare for compliance," said S. Ramakrishnan, group vice president and general manager, Oracle Financial Services Analytical Applications. "They are looking for solutions to streamline the compliance process with minimal impact on their existing IT environment. Oracle designed Oracle Financial Services Foreign Account Tax Compliance Act Management to these exact specifications, using Oracle Financial Services Analytical Applications Infrastructure, a common data model, and best practice capabilities to facilitate short- and long-term compliance."