The deadline for the annual Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) submissions is set for Saturday May 31 for UK financial institutions.
FATCA requires financial institutions to report annually to their local tax authorities information on their USA clients to be passed on to the US tax administration. Similarly, whereas CRS requires financial institutions to report annually to their local tax authorities information on their clients that are tax residents of other participating jurisdictions to be passed on to the relevant tax authorities.
But meeting these obligations is not without risks and challenges. These included accurately analyse and interpret the requirements, which consist of over 300 pages of guidelines to read and more than 65 fields per record to complete. Financial services firms also have to tackle complicated multilevel XML files and different jurisdictions with each posing a different set of challenges.
The risks of not overcoming these hurdles could mean incorrect completion of CRS and FATCA submissions or even failure to meet the reporting deadline and overall requirements. This in turn could cause costly investment in resources to help them file the relevant submissions, which in turn may place a burden on companies’ budges, disruption their daily operations. Incorrect or false submissions may also result in a withholding penalty to specific payments.
That’s where MAP FinTech comes in, promising to fully support businesses’ regulatory reporting needs with its MAP CRS/FATCA Reporting Service, which provides a user-friendly approach to receiving, validating, transforming and submitting the relevant information required under the CRS/FATCA reporting and due diligence rules. This service is delivered via MAP FinTech’s single platform Polaris, together with the rest of its reporting offerings and its team of experts’ impeccable support services.
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