GoldenSource and CTI strategic alliance develops end-to-end FATCA solution
(ENP Newswire Via Acquire Media NewsEdge) ENP Newswire - 14 December 2012
Release date- 13122012 - GoldenSource, a leading supplier of enterprise data management solutions for the securities and investment industry, has announced a strategic alliance with Compliance Technologies International (CTI), the leader in cutting-edge tax withholding and compliance software.
The partnership has developed a complete, end-to-end, FATCA solution for financial institutions.
The Foreign Account Tax Compliance Act (FATCA) revolutionizes tax withholding, tax reporting, and customer management globally. Although the Internal Revenue Service (IRS) recently announced new account provisions of FATCA are delayed until January 2014, financial institutions must be pro-active to ensure timely compliance to avoid being subject to the 30% withholding tax on income from U.S. financial assets.
'We did our homework to validate that GoldenSource's rich data model can manage the data required for an institution to comply with FATCA,' said Neill Vanlint, Managing Director at GoldenSource, EMEA and Asia. 'The CTI E-W8system is the perfect complement in supporting seamless submission of that data. We have been impressed with CTI's proactive market leading approach and deep domain expertise in this area. This offering extends our on-boarding capability or can be deployed as a standalone FATCA repository alongside any client management system. It's very flexible and can be deployed rapidly.'
The GoldenSource EDM platform acts as the master customer data platform whilst the CTI E-W8 system automates the solicitation, collection, validation and maintenance of US tax Forms W-8 and W-9 and Self Certification/KYC details. GoldenSource, which provides a foundation for customer and account hierarchy management, delivers new customer data to the CTI E-W8 system. The E-W8 system then automates the tax portion of the account opening process, simultaneously achieving FATCA compliance. Customers receive confirmation their instance of the application complies with IRS requirements in the form of a Memorandum of Understanding from the IRS.
Cyrus Daftary, Executive at CTI said, 'CTI is pleased our mutual clients will be able to bridge their legacy data seamlessly with our validation tools to ensure they will be FATCA compliant while simultaneously having the ability to monitor in real time any changes in circumstances. Managing the data integration can be one of the most time-consuming tasks facing today's financial professionals. GoldenSource solves this by ensuring CTI's solutions work as a seamless end to end solution.'
An additional asset of the solution is the ability to search the institution's KYC, CRM, and on-boarding systems to quickly identify those customers regarded as US citizens according to IRS criteria. An individual's holdings can then be aggregated across an array of account hierarchies and investment vehicles, matched across multiple banking systems and platforms to calculate the definitive holding total for that individual.
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