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: https://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
Is a 2027 T+1 move too soon for Hong Kong?
The Waters Wrap: Wei-Shen examines HKEx’s discussion paper on moving to T+1 in Q4 2027. A move so soon has its benefits but still requires careful consideration, she says.
EU AI Act leaves agents in regulatory limbo
A new paper published by AI ethicists draws attention to a hole in the EU AI Act surrounding high-risk agentic systems.
AI governance rules coming soon, says CFTC chair
Selig doesn’t want to stifle innovation, but says trading or advice algos will need guardrails.
Hitting the Great Wall: Details scarce on China’s Xinchuang initiative
In a quest to learn more about China’s Xinchuang initiative, Wei-Shen finds trying to get information feels like running into a wall over and over again.
24X says requested SIP exemption won’t break the market
In a new letter to the SEC, the startup exchange says data infrastructure that operates like the SIP is available as it looks to launch overnight trading this summer.
How banks are utilizing new AI forms in their KYC process
Execs from JP Morgan, ING, and Standard Chartered explain how they are looking to use agentic AI to streamline KYC workflows.
T+1 in Asia-Pacific: Preparing post-trade operations for what’s ahead
There are benefits of Asia-Pacific markets moving to T+1, but there are unique complexities to tackle, says DTCC’s Val Wotton.
Equity data plans eye Dec. 6 for overnight trading launch
The US SIPs are looking to launch near 24-hour operations as exchanges seek to extend their hours.