Introduction to FATCA Regulations

• Enables the user to record the details of the institution’s agreement with the Internal Revenue Service (IRS), which includes the effective date of the FATCA provisions, status (opt-in or opt-out) and certain default conditions.
• Allows the user to calculate the indicia status and determines if the customer is defined with potential US status with routines attached to the Indicia Status-Rtn and Potential US-Calc Rtn fields.
• Tracks the FATCA indicia associated with the ‘Power of Attorney’ and ‘Authorized Signatory’ conditions through the following fields:
  • POA CODE.1 – Allows the customer to define a ‘Power of Attorney’ condition in the CUSTOMER RELATIONSHIP code.
  • POA CODE.2 – Allows the customer to define an ‘Authorised Signatory’ condition in the AA.CUSTOMER.ROLE code.
• The defaulting condition for updating address from DE.ADDRESS to FATCA CUSTOMER SUPPLEMENTARY INFO can be updated here.
• Configures reporting of balances on closed accounts in the High Bal Days field.
• High Bal Days = <empty> – balance at closure is reported.
• High Bal Days = <3C> – highest balance during the preceding 3 ‘Calendar’ days is reported.
• High Bal Days = <5W> – highest balance during the preceding 5 ‘Working’ days is reported.

• FATCA Withhold API holds the references to APIs that are called by the Securities or TAX engine to know the FATCA status of a customer or a joint portfolio.
• FATCA Withhold Rate holds the Withholding Tax Rate under FATCA for recalcitrant and Non-Participating Foreign Financial Institutions (FFIs).
• APPLY.ADDL.WHT.CONDS is used to specify Additional Withholding Conditions.

• Enables the user to record various account classifications or FATCA statuses.
• Pre-defines a number of standard status records, including US.ACCOUNT, NON.US.ACCOUNT, RECALCITRANT, DORMANT, PARTICIPATING, NON.PARTICIPATING and REGD.DEEMED.COMPLIANT.
• WithHolding Applicable field denotes the taxability of the FATCA status.
• CUS.ASSET.THRES.VALUE, IGA.INDICATOR and PRE.EXIST.CUSTOMER values are considered in deciding the taxability of the FATCA status.
• PRIORITY.LIST field holds the existing tax status number which is less than the current tax status number.

• Specifies the high-level parameters governing the balance aggregation.
• Record must be created for each company running the FATCA module.
• Considers most of the account balances, such as depository and custodial, and all accounts or portfolios held by the user, including the joint accounts, for aggregation.
• Financial accounts (existing prior to 1 July 2014) are classified into the following categories:
  • Identify individual accounts with balance or value less than USD 50,000.
  • Identify entity accounts with balance or value less than USD 250,000.
  • Identify high-value accounts with balance or value less than or equal to USD 1 million.
• Accounts with balance less than USD 50,000 for individuals and less than USD 250,000 for entities can be treated as non-US accounts and not subject to due diligence.
• High-value accounts are subject to enhanced due diligence.
• Balance check is done on close of business on 30 June 2014 to be followed by a yearly check on 31st December starting from 31st December 2015.
• Exclusion of specific account categories in deriving the aggregated account balances can be captured in the Excld For Acct Agg field.
• Same Customer Relation Code field holds the relation code, which denotes the relation between the individual and sole proprietor customer. It is used to report the closed account details of the individual or sole proprietor customers. For example, during closure, if the remaining amount of the account, which belongs to an individual customer is transferred to the account belongs to a sole proprietor or vice versa, then the closed account should not be marked as closed.

• Captures the conditions for the automatic update of the FATCA Status field in the FATCA.CUSTOMER.SUPPLEMENTARY.INFO application.
• Conditions for different documentation for each classification can be set using the Decision field to Operand fields.
• Conditions using any fields from the CUSTOMER and FATCA.CUSTOMER.SUPPLEMENTARY.INFO applications.
• Conditions by defining APIs and IGA Models.
• Enables the user to set additional validation as per their requirement and is captured in the Existing/New field. The possible values are as follows:
  • Existing – The condition applies to those accounts opened before the FATCA effective date.
  • New – The condition applies to those opened on or after the FATCA effective date.
  • Both – The condition applies to both new and existing clients.

• Defines the type of customer or entity and stores the related information.
• The US Document field specifies whether this document establishes the US Status. For example, the value for this field is set as Yes for documents such as W9.
• The Non US Document field specifies whether this document establishes the foreign status. For example, the value for this field is set as Yes for documents such as FGN.PASSPORT.
• The Entity field is set as Yes if the document is allowed for entities.. For example, the value for this field is set as Yes for documents such

This application allows the user to define the fields that are used for reasonableness check. The ID of the application is FATCA.

• There are two sets of multi-value fields, Tax Country From and Tax Country To.

• One set of multi-value field is used to check the customer details during on-boarding while the another set of multi-value field is used for post on-boarding.

• Tax Country From and Tax Country To fields allow valid Temenos Transact application, field names (including local reference fields) and the fields should hold the valid country code.