An Introduction to FATCA How do you plan on digesting the proposed FATCA regulations that were issued recently and determining the potential impact on your business? The proposed Foreign Account Tax Compliance Act (FATCA) regulations that were released last month comprised a detailed and complex set of requirements that will need to be complied with by any Participating Foreign Financial Institution (PFFI) that decides to enter an agreement with the U.S. Treasury Department. Broadly speaking, FATCA will have far reaching consequences for a large number of financial businesses globally which will impact existing account opening systems, procedures and collateral, as well as, creating obligations for tax withholding and reporting on a sub-set of accounts. FATCA will require FFIs to segment all existing accounts by account value and entity type and conduct electronic and/or paper based searches of these accounts to determine whether they are held by U.S. persons, and if so, conduct enhanced customer due diligence on these accounts to confirm FATCA status. Whilst still being discussed at an inter-government level, the tax reporting requirements are likely to involve re-engineering existing tax reporting systems and supporting processes. Not surprisingly, the costs of compliance have the potential to exceed those spent on AML/CTF and nonparticipation does not seem like an option since the consequences of becoming a Non-Participating FFI (NPFFI) are broad reaching and include being subject to 30% tax withholding on any U.S. sourced income, as well as, the likelihood of being exiled by PFFIs who are seeking to simplify their own FATCA compliance response by making it unacceptable to be dealing with NPFFIs. This workshop will outline the core requirements of the proposed FATCA regulations and will provide a framework for you to assess the impacts from a strategic, commercial, technical, operational and people change management perspective. This workshop will walk through the key obligations and provide recommendations on the steps required to properly assess and plan out the FATCA Program and ensure key stakeholders are engaged in understanding the complexity and implications of FATCA and dedicating appropriate resources in rising to this challenge. The content of this workshop will cover the main pillars of FATCA including; general requirements, customer due diligence, U.S. account discovery and remediation of pre-existing accounts, withholding obligations, reporting requirements and the compliance framework. There are also modules on conducting a detailed impact assessment and planning the FATCA Program.
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An Introduction to FATCA Agenda* Overview of FATCA
»»
FATCA once the FFI Agreement has been entered into?
»» What is FATCA? »» What is the background behind FATCA?
What are the potential consequences of failing to comply with
»»
What are the record keeping obligations for FFIs?
»» What is the size of the tax evasion problem? »» What is the current status of the FATCA regulations?
Customer Due Diligence (New Accounts)
»» How is FATCA designed to work?
»» What are the requirements for FATCA on-boarding and when do they start?
»» What are the key lobbying points emerging from Australia? »» What are the key lobbying efforts that are under way?
»» What are the requirements for customer due diligence for new accounts post 1/7/13?
»» How with FATCA impact PFFIs and NPFFIs? »» What are the key dates and milestones for FATCA compliance? »» What does a typical FATCA roadmap look like? »» What are the main challenges FFIs will face in becoming FATCA compliant? Key provisions of the proposed FATCA regulations? »» What are the key changes since previous guidance? »» What is the scope of FATCA? »» What are the key provisions contained in the proposed FATCA
»» What is U.S. indicia? »» What are the rules around reliance on existing AML KYC procedures? »» What enhanced customer due diligence is required when U.S. indicia is discovered? »» What are the various IRS forms and when should each be used? »» Will you verify U.S. data against U.S. based electronic data sources? »» What are the current challenges that industry faces in complying with FATCA?
regulations? —— General FATCA requirements —— Customer Due Diligence (New Accounts) —— Customer Due Diligence (Pre-Existing Accounts)
Customer Due Diligence (Pre-existing accounts) »»
account remediation?
—— Withholding and Reporting »» What is the FFI Agreement?
»»
What factors should you consider when deciding to sign the FFI Agreement?
»» »»
»»
What are the transition rules for FFI branches /affiliates with legal What things do the Board and Executive Team need to know
»»
What is the role of the Board and Executive in overseeing FATCA compliance?
»» »»
What actions are required when dealing with recalcitrant accounts or accounts that FFIs are required to close?
»»
What are the general challenges FFIs might face when conducting pre-existing account screening and remediation?
about FATCA? »»
What are you required to do if you suspect or confirm you have identified a U.S. account holder?
prohibitions on compliance? »»
What enhanced customer due diligence is required when U.S. indicia is discovered?
»»
surrounding these? »»
What are the steps for conducting pre-existing account remediation (Individuals and Entities)?
»»
What is an ‘Expanded Affiliate Group’ and how does this work? What are limited FFI branches / affiliates and the rules
What level of checks have to be performed based on client account value / entity type?
General FATCA Requirements »»
What are the requirements and timeframes for pre-existing
FATCA Withholding Tax »»
What is withholding tax?
Officer?
»»
How is FATCA withholding designed to work?
What are the certifications an FFI Reporting Officer must give to
»»
What is the difference between a ‘withholdable’ and a ‘passthru’
What are the likely roles and responsibilities of an FFI Reporting
payment?
the IRS? »»
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What are the tax withholding timeframes?
cont...
* The course providers reserve the right to refine the content of this course at any time.
An Introduction to FATCA Agenda* cont’... »»
What are the circumstances when withholding is and is not required?
»»
Identifying the payee status of an entity (including those exempt
»» What are the similarities and differences between AML CIP and FATCA? »» Lessons learned from AML that can be applied to FATCA?
from withholding tax) What are some of the typical withholding payment scenarios?
Planning the FATCA Program and Getting Started
»»
What are the general challenges for conducting tax withholding?
»» Why do most organisations need a FATCA Program?
»»
What actions can you take now to prepare for FATCA
»» What are the core considerations when designing the FATCA
withholding?
Program? »» What is role of Board and Executive in overseeing FATCA
FATCA Reporting »» What are the FATCA tax reporting requirements? »» What are the FATCA tax reporting timeframes?
compliance? »» What do the Board and Executive Team need to know about FATCA?
»» What are the FATCA data requirements and timing for reporting?
»» What is the best FATCA operating model for your business?
»» What are inter-government TIEA agreements?
»» What are the likely roles and responsibilities of the FATCA
»» What are the potential issues in respect of Australia (or other countries) signing TIEAs? »» What are some typical reporting scenarios? »» What are the general challenges for reporting on U.S. and
Responsible Officer? »» Preparing a business case for the Board – what are the cost drivers? »» What are the key recommendations to get things started?
recalcitrant accounts? Wrap up and close Conducting a detailed FATCA impact Assessment »» Why conduct a FATCA impact assessment? »» Who needs to participate in the FATCA impact assessment? »» What are the main components of a FATCA impact assessment?
»» What tools and resources are available to you to assist you further? »» What actions should you take now? * The course providers reserve the right to refine the content of this course at any time.
About your presenters Anthony Quinn is well versed in FATCA having led an impact
Mary-Lynn Ladbrooke is an experienced Senior Compliance
assessment for an international investment bank and understands the
Executive and Practitioner, a professional with over 25 years in the
complexities of implementing large scale transformational risk and
banking industry both locally and overseas. With a track record for
compliance programs having been the Program Manager responsible
operating both strategically and tactically, Mary-Lynn has developed
for leading the AML/CTF Program for over four and a half years for
and implemented broad based banking and AML/CTF specific
the same organisation.
compliance programs for Australia and banking operations across
Joy Geary is a recognised expert in customer on-boarding and AML/ CTF processes.
Asia. This has also included the development and delivery of compliance and AML/CTF training programs across the region as well as presenting on compliance and AML/CTF at various regional events.
Continuing Education
Together they will lead you through the FATCA workshop and engage you in discussion around the complexities in becoming FATCA ready.
6.5 CE (Regulation & Compliance) Hours
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