Fatca

iMAL*ITR-FATCAiMAL*ITR-FATCA

©Copyright 2015 Path Solutions. All Rights Reserved.

FATCA Imperative: A Practical Approach to Compliance

The implementation of the Foreign Account Tax Compliance Act (FATCA) on July 1, 2014, marked a major change in the “rules of the game” for international tax cooperation, posing serious operational and systemic challenges for foreign financial institutions (FFIs). One of the most complex challenges is the need for FFIs to gather sensitive client data to identify

accounts for the purpose of reporting to the Internal Revenue Service (IRS).

Also, with mandates stemming from Dodd-Frank Act, Basel III and other post-financial crisis financial regulatory changes gaining momentum, FFIs that act now can integrate FATCA

work into other compliance requirements. But, complying with FATCA usually requires new system infrastructure to support data identification, aggregation and reporting.

Meets compliance requirements for all

types of financial institutions

Designed to allow compliance with the

international regulations of FATCA

Identifying and disclosing US account holders

Reporting to IRS

Withholding penalty for recalcitrant account holders / non-participating FFIs

Consists of three major

components:

Our FATCA Solution

Setting the Stage - Key Benefits

12 3

4

Complies with IRS enforcement of

global tax reporting

Supports the three fundamental components

to FATCA compliance: Client identification and

documentation, reporting and withholding

Enables financial institutions to leverage

their compliance activities, reduce business

operational risks and gain efficiency in their daily

activities

Classifies US clients and reports them to concerned

authorities

Time-effective

User-friendly

Minimizes operational

risks

Adheres to most

pertinent regulations

Mitigates compliance

risk

Added Value & Advantages

Client Identification

The Transition Process

Automatic Identification

Manual Identification

Two methods to classify US account holders:

Checking customer information

Monitoring standing instructions and checking for changes in circumstances

Customer Information Update

Identification Process

Client Identification

Indicia

Reporting Equation

Reporting

Internal tracking of US recalcitrant account holders / non-participating FFIs

Reporting data based on FATCA reporting requirements

30%

Withholding tax against a recalcitrant account holder / non-participating FFI

on payments of US source income

Compliance Management

Withholding Penalty

Focused solution

covering th

e three

key components

of the FA

TCA

protocol

Comprehensive,

intuitive, and

user friendly

Multilingual

for world

wide

deployments

Meeting growing

international

regulatory needs

We Can Help - The IT Connection

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www.path-solutions.com | [email protected]

©Copyright 2015 Path Solutions. All Rights Reserved.