Banks begin to deploy technologies to ensure FATCA compliance
Temenos (SIX: TEMN), the market leading provider of banking software, today announced that a leading global wealth manager has signed for its new Foreign Account Tax Compliance Act (FATCA) module to ensure compliance across all of its global locations.
Complying with FATCA will be a major requirement for financial institutions, with the biggest challenge being the vast amounts of information that must be compiled, verified and reported. The bank, a current user of Temenos T24 (T24) core banking application, helped to co-develop the solution and will become the first user to adopt the new FATCA module.
Temenos has a number of existing T24 clients which are currently evaluating this new module, which will be delivered in three phases to meet the regulatory requirements - client identification, withholding tax and reporting. The module can be deployed with minimal effort, with the first phase taking less than two weeks to implement.
David Arnott, CEO, Temenos comments: “With FATCA becoming effective on 1 January 2014, financial institutions need to act now to ensure compliance. Given the number of Temenos customers affected by the new legislation, we have moved quickly to develop the necessary functionality to enable all customers to comply and so remove this compliance pain point. We are delighted to have signed our first adopter, one of the biggest banks in the industry, who helped us to deliver a comprehensive solution able to meet the complex requirements of FATCA.”