Newgen partner presentation on FATCA

• 1. Newgen Presentation on FATCA

2. FATCA Applicability and Timelines US citizens & Business entities irrespective of where they are, must file and pay US income Tax According to the IRS, under FATCA, Every Bank should identify US entities and collect information on IRS compliance or else deduct at source 30% Tax and deposit it to IRS. 19 August 2013: Registration Portal opensJune 2 2014: List of Participating FFIs published201330 June 2014: Last date to include accounts for Pre-Existing201425 April 2014: Must Register on Portal1 July 2014: Implement New Account Opening Procedures2015March 30 2015: Reporting to start for 2013 and 2014Significant impact on Banks US business if not complied. 3. What does the Bank need to do? Identify existing Accounts of US entities by searching US Indicia (citizenship, residence, address, phone no, care of / hold mail, standing instructions, POA etc.) Verify whether they are FATCA reportable (Remediation) Contact, collect and validate necessary documents (KYC, W8/W9 forms) Iterative process of follow up with customer (3-6 months) Audit able correspondences & communication with customer Classify as FATCA Reportable, Waiver, Not US Person etc. Start US Indicia identification for new customers on boarding from Jul 1st, 2014 30% withholding for recalcitrant customers Report to IRS or local competent authority (basis IGA model)Onus & responsibility on Banks FATCA due diligence Manage records Audit trail essential to prove process followed 4. Comprehensive Solution for FATCA Compliance from Newgen Acquire Customer data from multiple systems Normalize & aggregate customer records using Custom ETL LayerInitiate Apply rules for classification Existing & NewIndividuals & Entities Execute Threshold & Indicia rules Periodic review cyclesClassify Identify Missing Data Annual FFI Reporting Audit & Transaction Records Collect, Verify and validate Documentation for Status Operational & Investigative Reports Document Archival for easy access Assign for follow ups (Case Management) Transactional reporting for FATCA life cycle Identify Recalcitrant accountsRemediateReport Customer correspondences Decision logs Absolutely necessary to maintain records of inspection / remediation for auditAudit & Document ManagementNewgen enables leading banks across the globe meet their compliance requirements 5. Action Plan for FATCA Compliance FATCA in effect from Jul 1st, 2014 Target sample due diligence in Jun, so be ready by May 2014 Implementation timelines approx. 4 months depending on gaps Road map to meet timelines Demonstrate Newgen FATCA solution to bank Workshop with bank SMEs Understand current on-boarding process & core applications High level mapping of Newgen solution with bank landscape SOW submission to bank & sign off (1-2 iterations) Reference calls / visits with Newgen customers Commercial proposal 2 of the largest Caribbean banks (where banks are most active for FATCA compliances due to obvious reasons) FCIB Barbados and NCB Jamaica are already implementing Newgen FATCA SolutionTime to start NOW 6. Newgen Offer Agile, yet ready to start solution Agility to quickly incorporate future regulation changes Adapt to bank processes & SOPIntegration (ETL) estimate based on gaps identified Get data from core / KYC applications Analyze & map Transform LoadBase module without integration Core processing engine Workflow and case management Document management Rules engine Correspondence module with audit trail (email, text, call) BAM (dashboards and reporting) FATCA Process AcceleratorOptional Account opening process for new customer on-boarding from Jul 1st, 2014 (with FATCA compliance), Entity Classification Wizard 7. How do we engage-FATCA Engagement ModelSOWHow do I educate my peers on what we need to do?How do we build process KPIs and Dashboards?How can I engage reusing your FATCA Best practices templates How can we partner to generate Business Outcomes? 8. Newgen Overview Leading Global Software Provider for Business Process Management (BPM), Enterprise Content Management (ECM) & Customer Communication Management (CCM)Investors Global footprint with 1100+ ECM and BPM installations in 50 countries across Verticals Over 150+ customers in BFSI, successful implementations for FATCA Over 100+ mission-critical deployments Credited with some of the worlds largest implementations Innovative culture, Consistent R&D investments, 40+ patents Certified for ISO 9001:2008, ISO 27001:2005 and CMMI Level3Offices USA Canada UAE Singapore India 9. More Information IT-as-a-Service Consulting S.P.R.L18 avenue Jean XXIII 1330 Rixensart Belgium Tel: +32 2 318.12.71 Fax: +32 2 318.81.41 Mobile: +32 478.40.30.12 Email: [email protected] web: www.itaasc.com