Fatca ready reckoner


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Newgen helps organization’s gain FATCA compliance through a thought leadership approach. It provides Financial Institutions with robust FATCA compliance software and also help them create step by step approach for a comprehensive compliance strategy.

To know more visit www.nwgn.us/SpIeXe

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Fatca ready reckoner

  1. 1. As we fast approach the stipulated timelines associated with FATCA, enterprises worldwide need to quickly get their acts together and redesign all processes to adhere to the various regulatory mandates. This enterprise wide change has to be planned meticulously, ensuring business as usual doesn't suffer any major jolts in the process. Approaching FATCA as just another reporting exercise is a short-sighted approach that may lead to complexities in future. Achieving compliance in a comprehensive manner will require specialized roles and processes to be created, facilitated by an extended information gathering mechanism built on an efficient Information Management System. Are you ready for FATCA? Overview STAKES ARE HIGH REPUTATIONAL RISK FINANCIAL RISK OPERATIONAL RISK FATCA What is needed to be FATCA Compliant - A Readiness Checklist What is needed Why is it needed How do we accomplish this Core Banking System Newgen FATCA Solution Data Capture To capture FATCA related additional KYC data fields for identification of customer status as per regulatory guidelines Template driven data capture to ensure capturing of all data fields that users would need not only for FATCA but also for KYC and other regulatory norms. Yes Yes Rules for Indicia Identification, Classification and Aggregate balance checks FATCA is a regulatory framework that needs accuracy, timeliness, standardization and consistency in meeting the process guidelines. FATCA doesn't allow manual errors and judgment related leakages to lead to Non-Compliance based risks. Pre-defined and user- configurable business rules framework helps define customer classification rules based on US indicia and threshold limits while adapting to internal KYC processes. Partially Yes Yes Ability to add/modify these rules by business to take care of future regulation changes Since US FATCA regulations might release updates & changes, it may need flexibility to change the indicia, aggregate balance rules and remediation process without heavy investment of time and cost The agile Rules Engine enables users to manage and modify compliance rules without any coding skills. It has configurable library of re- usable rules that can be used for future regulatory changes. No Yes Review and Remediation Management FATCA compliance needs a robust review and remediation process to be in place for case management capabilities. Part of this is needed to bring in transparency, consistency and improving auditability. Auto-case creation, de- duplication checks, rule based routing and escalations, linking / tracking of related cases until closure render strong case management capabilities. No Yes Alerts, Exceptions and Escalation Management Critical elements are needed to make informed, proactive and intelligent decisions when the issue originates and not when it gets escalated as Non- Compliance. Rules based Alerts, roles based escalations and authority based exceptions make the process much more efficient and compliant No Yes Recalcitrant Processing Ability to define, identify and decide on Recalcitrant customers is a primary need for a potent FATCA program Collaboration based approval process based on defined rules & validations for customer classification enables entire workflow automation of the Recalcitrant process No Yes
  2. 2. What is needed Why is it needed How do we accomplish this Core Banking System Newgen FATCA Solution Change of circumstances FATCA regulations need Automatic triggering of business events & change of customer status codes Rules driven approach to automate and proactively monitor the customer status with alerts sent to the responsible officers in the form of a dashboard. No Yes Track non-compliance at customer & account level As per the IRS requirements FFI's need to present track sheets for non- compliant customers. FFI's need to have a process and associated systems in place for tracking and monitoring non- compliant customers and account level details so as to be informed and compliant internally as well as externally. The tool enables any non-compliance to be tracked as per guidelines that have been set in the FATCA process. It not only highlights but also presents those non- compliances proactively. No Yes Business Process Management FATCA needs FFI's to have flexible and dynamic workflows to help compliance managers and responsible officers manage customer transactions across the lifecycle of classified customers through remediation and recalcitrant status. The tool includes investigations, document collection and contact management processes with in built audit checks, notifications and authorizations No Yes Document Management Document / evidence capture, linking and de-linking, versioning, tracking and archival capabilities while supporting the FATCA data retention requirements are critical elements needed for FATCA compliance. An integrated Document Management system enables automatic creation of electronic customer files with history of communication documents archived along with auditable versions at all touch points. No Yes Communication Management Ability for relationship managers to manage complex, multi-threaded high net worth relationships with complete accuracy and control. Automated Template and Trigger driven correspondences & communications to all clients, reduces the manual effort considerably. No Yes Audit Management FATCA regulations specify Bank's ability to audit the classification as well as remediation process Tool enables setting audits on the process lifecycle and proactively presenting the transactional history for all regulatory reporting No Yes Monitoring and Investigation Capabilities Ability to provide alerts, notifications, queuing and work management along-with comprehensive audit trail facilities are required to support monitoring and investigation capabilities With the Real-Time Reporting and Dashboard tool, users can :  View Pre-Configured Reports  Modify Existing Customers  Configure new reports using BAM tool The Tool comes with pre-configured reports:  Compliance Reports which need to be sent to IRS/Local Govt. (IGA)  Investigative Reports for monitoring and tracking of entire Process No Yes Periodic Reviews FATCA needs regular periodic reviews on all customer accounts to be able to present the updated status report whenever needed Business Process Management capabilities enable regular/scheduled reviews which allow monitoring reports to be presented to the responsible officers of the Bank No Yes IRS / IGA reporting FATCA regulations put a lot of stress on reporting guidelines which are needed for IRS/IGA reporting Pre-configured reporting formats available as a part of the tool and ability to generate specific formats as per guidelines No Yes Future ready solution extendible to other country FATCA regulations FATCA has been an extensive and extended regulation with many other countries coming up with their own versions E.g. UK FATCA is imminent in near future. Agile and flexible FATCA solution to take care of the current as well as future versions of FATCA without any hard coded process framework No Yes Newgen Software Technologies Email: usa@newgensoft.com For Sales Query: +1 (202) 800 7783 Email: corpmktg@newgensoft.com For Sales Query: +91 11 40773769 Email: emea@newgensoft.com For Sales Query: +44 (0) 2036 514805 Email: asiapac@newgensoft.com For Sales Query: +65 3157 6189 Americas IndiaAsia Pacific Europe, Middle East & Africas +973-1-619-8002