BNP Paribas Securities Services has launched a service to help asset managers meet the requirements set out by the US Foreign Accounts Tax Compliance Act (FATCA), the US-driven initiative set to improve tax compliance involving financial assets and accounts for US citizens.
Under FATCA, non-US financial institutions will be required to report information about financial accounts held by US taxpayers, or held by foreign entities in which US taxpayers hold a substantial ownership interest. Funds are considered financial institutions, and therefore subject to FATCA’s reporting requirements, so need to prepare well in advance in order to meet FATCA obligations from January 2014 onwards.
In its capacity as a transfer agent, BNP Paribas Securities Services will offer funds the ability to identify investors into those funds, and undertake associated services. It will also generate all requisite fund and underlying investor reports as per the requirements of the US Internal Revenue Service (IRS) and, in all FATCA partner countries, of the national tax authorities.
Philippe Ricard, head of asset and fund services at BNP Paribas Securities Services said: “Although the final details of what foreign financial institutions will be required to report have not yet been published, we know in broad terms what is required in terms of data and how to meet the associated processing and reporting requirements.
“Fund evaluation, monitoring and reporting are at the core of our business, so we are in an excellent position to help funds and asset managers comply with FATCA. This service is testament to our on-going commitment to help financial institutions navigate the changing regulatory landscape.”