Cognizant FATCA Solution

FATCA (Foreign Account Tax Compliance Act) is a new U.S. law intended to prevent offshore tax evasion by Americans with foreign accounts and American residents. Participating foreign financial institutes (FFIs) must check American accounts, account owners, and corporations and impose a 30% tax on uncooperative account holders and report it to the IRS.

Considerations related to FATCA

Require transparency and agility

Respond to complex, vague, and continuously changing business logics.

Maintain good relations with customers

Have them understand and justify negative estimations and investigations, IRS reports, and withholdings.

Automation of complex decision-making

Application of FATCA procedures result in very big workloads, and it requires upgrades of existing processes and detailed customer identification procedures, and therefore must be automated.

Integrate with IT Environment

Must be linked to existing applications such as opening accounts, making payments, etc. and requires service-oriented approach method to minimize impact on existing systems.

Compliance to Regulations

All financial companies that do business with the U.S. including Korean banks, investment securities companies, futures companies, and insurance companies