Dion Global Solutions, the technology provider, has said the implementation of its latest deal to support Fatca compliance means its Fatca TRAC solution is now being used globally in response to the US legislation.
Fatca, the Foreign Accounts Tax Compliance Act, is intended to enable US authorities to recover tax from US persons living outside the country. The timeline of Fatca implementation means that foreign financial institutions will have to start reporting on their US clients either directly to the US government or via their home country fiscal authorities via so called Model 1 or 2 Intergovernmental Agreements.
Dion’s latest deal means it has now made sales of its solution to banks on four continents and 80 jurisdictions. It said the TRAC solution is being used by some larger financial institutions for global reporting, pulling data from multiple overseas offices into a centralised system.
“Others are using it as a complete compliance solution, which includes client identification and classification, remediation, certification and reporting. The solution will also be used to cover requirements under the Automatic Exchange of Information (AEOI) programme.”
Colin Camp, managing director of Products and Strategy at Dion, said: “With most firms working their way through the client classification and certification process, a major focus is now being placed on the governance and production of reports to the IRS or local tax authorities. As we move throughout 2015, attentions will quickly move beyond Fatca compliance, towards the flexible technology needed to support the demands of AEOI.”