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
SEC gunning to take over CAT in 2027
Chairman Atkins has plans for the SEC to run the Consolidated Audit Trail directly. Industry participants are split on the idea.
Managing regulatory transformation through a Dual-Flow Operating Model
Darshan Shah presents an operating model that enables project teams to implement complex regulatory programs, preserve business continuity, reduce risk, and prepare enterprise platforms for regulatory change.
The complexity of using AI to tackle compliance
The Waters Wrap: Law firms are introducing new tools to help with regulatory compliance, potentially encroaching on regtech vendors’ territory, Wei-Shen writes.
SEC denies 24X’s requested SIP exemption, for now
Start-up exchange cannot begin its overnight market session before the equity data plans’ hours are scheduled to be extended on December 6. But that’s only half of it.
Cyber audit leaves Eiopa with a credibility problem
The Dora supervisor charged with overseeing critical tech vendors has been critiqued for IT security failings.
The danger of prediction markets is precisely how useful they are
The Waters Wrap: Prediction markets may seem like a gamer’s paradise or a honey pot for those looking to corrupt betting. But they have another use in forming institutional prices. At least, that’s what Max Bowie is putting his money on.
The Clarity Act enters the Last Chance Saloon
The US’ landmark crypto bill’s future looks uncertain. Crypto fans may still see the bill pass before fall, but it’s the hope that kills you, Eliot writes.
Red alert: how Nasdaq’s Smarts became surveillance blind spot
Software that looks for shifty trades has been asleep on the job, affecting alerts for hundreds of products.