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
Insurance: The role of risktech in effectively managing emerging risks and driving competitive edge
This whitepaper covers the global survey, conducted by Chartis Research and TCS, of banking, financial services and insurance firms, which found that insurers are struggling to adapt to evolving risks and regulatory requirement increases. Chartis offers…
FX automation key to post-T+1 success, say custodians
Custody banks saw uptick in demand for automated FX execution to tackle T+1 challenges.
Observations and lessons to learn from the move to T+1
The next few years will see other jurisdictions around the world look to North America for guidance on transitioning to shorter settlement cycles.
Expanded oversight for tech or a rollback? 2025 set to be big for regulators
From GenAI oversight to DORA and the CAT to off-channel communication, the last 12 months set the stage for larger regulatory conversations in 2025.
DORA flood pitches banks against vendors
Firms ask vendors for late addendums sometimes unrelated to resiliency, requiring renegotiation
In 2025, keep reference data weird
The SEC, ESMA, CFTC and other acronyms provided the drama in reference data this year, including in crypto.
Waters Wavelength Ep. 299: ACA Group’s Carlo di Florio
Carlo di Florio joins the podcast to discuss regulations.
IEX, MEMX spar over new exchange’s now-approved infrastructure model
As more exchanges look to operate around-the-clock venues, the disagreement has put the practices of market tech infrastructure providers under a microscope.