Infotech Lead America: Oracle has introduced Oracle Financial Services Foreign Account Tax Compliance Act Management (FATCA) to help financial institutions prepare for Foreign Account Tax Compliance Act provisions that will begin to go into effect in 2014.
All financial institutions – U.S. domestic and foreign –will be required to classify account holders as either U.S. or non-U.S. based, under FATCA. They will have to report directly to the United States Internal Revenue Service all specific information about financial accounts held by U.S. taxpayers or by foreign entities in which U.S. taxpayers hold a substantial ownership interest.
Oracle’s solution for account holder onboarding and categorization, due diligence and reporting will help financial services institutions streamline processes for immediate as well as long-term compliance with FATCA. This will be possible with minimum impact to their existing information technology infrastructure.
Oracle Financial Services Foreign Account Tax Compliance Act Management consolidates FATCA-specific data in a single repository which makes it possible to centrally manage the compliance process. It provides an enterprise-wide view of customers.
The solution can help reduce risk and accelerate organizational readiness by leveraging best practices for due diligence. Oracle’s industry-leading compliance architecture will enable financial institutions to add new accounts and efficiently manage current accounts
The solution offers pre-configured and validated account categorization, indicia and existing account review rules, as well as audit trail capabilities and reporting templates facilitate compliance processes.
Oracle Financial Services Foreign Account Tax Compliance Act Management easily integrates with existing Oracle and third-party applications using standard batch interfaces, helping to accelerate time to deployment and optimize a bank’s existing technology investment.
The solution is built on the industry-leading Oracle Financial Services Analytical Applications Infrastructure and leverages a common data model, built specifically for the financial services industry, to support compliance solutions.
Oracle survey says financial services are losing 20 percent of revenue by not utilizing data effectively. Oracle shared the results of its ‘From Overload to Impact: An Industry Scorecard on Big Data Business Challenges’ report which stated that 94 percent of financial services executives felt that their organization is collecting and managing more business information today than two years ago, by an average of 75 percent more.