Will IDES March Forward?
Fatca compliance system adds complexity for the industry
The launch by the US Internal Revenue Service (IRS) this week of its International Data Exchange Service (IDES) seems intended to address the complaints many in the industry had last year and in previous years that the IRS was not adequately defining what would be required for compliance with the US Foreign Account Tax Compliance Act (Fatca).
Preceding IDES' debut, foreign financial institutions had to obtain a GIIN identification number by July 1, 2014 in countries without intergovernmental agreements (IGAs) with the US, and by January 1, 2015 in countries with IGAs. Next, firms will have to meet new annual reporting deadlines in March and September, raising the question of whether IDES will be easy enough to navigate and functional enough to allow that to happen.
Back in March, I asked if the IRS might have further adjustments to what had been a February deadline for having reporting processes and customer remediation in place, that would complicate matters. IDES does not reportedly include any such major changes to the substance of what firms must file and provide for Fatca compliance, so that appears settled now.
However, as Micah Willbrand, global director of anti-money laundering product marketing at NICE Actimize points out, from a technological and operational perspective, the IDES rollout is likely to strain firms' ability to meet the upcoming March and September deadlines.
The intent behind introducing IDES is to give firms a tool to meet the deadlines with the resources they have, as Willbrand sees it, but it could become trial-by-fire with the first-ever annual reporting cycle, using a new, untested system.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
New data granularity rules create opportunities for regtech providers
As evidence, Regnology increased its presence in North America with the addition of Vermeg's Agile business—its 8th acquisition in three years—following a period of constriction and consolidation in the market.
Bond tape hopefuls size up commercial risks as FCA finalizes tender
Consolidated tape bidders say the UK regulator is set to imminently publish crucial final details around technical specifications and data licensing arrangements for the finished infrastructure.
The Waters Cooler: A little crime never hurt nobody
Do you guys remember that 2006 Pitchfork review of Shine On by Jet?
Removal of Chevron spells t-r-o-u-b-l-e for the C-A-T
Citadel Securities and the American Securities Association are suing the SEC to limit the Consolidated Audit Trail, and their case may be aided by the removal of a key piece of the agency’s legislative power earlier this year.
BlackRock, BNY see T+1 success in industry collaboration, old frameworks
Industry testing and lessons from the last settlement change from T+3 to T+2 were some of the components that made the May transition run smoothly.
How ‘Bond gadgets’ make tackling data easier for regulators and traders
The IMD Wrap: Everyone loves the hype around AI, especially financial firms. And now, even regulators are getting in on the act. But first... “The name’s Bond; J-AI-mes Bond”
Can the EU and UK reach T+1 together?
Prompted by the North American migration, both jurisdictions are drawing up guidelines for reaching next-day settlement.
Waters Wavelength Ep. 293: Reference Data Drama
Tony and Reb discuss the Financial Data Transparency Act's proposed rules around identifiers and the industry reaction.