How to prepare for FATCA

FATCA (the Foreign Account Taxation Compliance Act) is a United States statute that requires United States persons, including individuals who live outside the United States, to report their financial accounts held outside of the United States. It requires foreign financial institutions to report to the Internal Revenue Service (IRS) about their American clients.

Although FATCA has been introduced by the United States, Primacy extends the functionality to any country operating or soon to operate similar legislation.

The following set up is required in Primacy Workplace:

Enable FATCA regulations for a country
Apply FATCA procedures for a country (if necessary)
Grant users the ability (workflow right) to run a FATCA review
Confirm business party jurisdiction
Check and update FATCA scopes and statuses (if necessary)
Set the GIIN (Global Intermediary Identification Number)
Select reportable clients
Set the TIN (Taxpayer Identification Number) for all reportable clients

Preparation

The following must be completed before a FATCA review can be completed.

Prerequisite	Resolution
Enable FATCA regulations to a country.	Click Settings > Lists > System-wide codes > Countries/ regions > Locate and double-click country > General tab > Has FATCA regulations? checkbox. The FATCA procedures tab will be activated upon confirmation. You may also apply these FATCA regulations to a country that operates with similar legislation.
Apply FATCA procedures for a country (if necessary).	Once the Has FATCA regulations? checkbox is selected, the FATCA tab will appear in the client Properties under the Taxation tab > FATCA. To add a procedure, click the Add FATCA procedure button. Complete the Description field when adding with a description of how you want this indicia to be known when reviewing. With sufficient SQL skills you can write your own FATCA procedures. By prefixing these with FATCA _ they can be added in the same way as our standard procedures to the country record. See FATCA procedures (list) for further information on the standard stored procedures and the indicia being checked.
Grant users the ability to run a FATCA review.	Click Settings > Lists > Organization setup > Employee roles > Workflow rights > Can run FATCA review checkbox.
Confirm business party jurisdiction.	The following is a list of Client and Contact types within Primacy Workplace. Each type has a different definition of Jurisidiction. The following Primacy fields which can be found in the properties of a client, person or organization are referenced by the procedure FATCA_GetCountryOfIncorporation. These fields must be correctly populated in order for the stored procedure to evaluate content against the country's indicia. Company = Country of incorporation Trust = Country of proper law Fund = Country of incorporation Foundation = Country of proper law Partnership = Person = Country of birth, country of citizenship, country of domicile, or country of residence Organization = Country of incorporation
Check and update FATCA scopes and statuses (if necessary).	Click Settings > Lists > System wide codes > FATCA scopes and statuses. Click the Add FATCA scope button to add a new FATCA scope. -or- Click the Add FATCA status button to add a new FATCA status. Scopes and statuses are user definable and can be set in Settings* > Lists > Application configuration > Pick list choices > FATCAScopeCode and FATCAStatusCode.*
Set the Global Intermediary Identification Number (GIIN) of the Master institution.	Click Client administration > Tasks > Setup > Edit master institution. Click the Taxation tab > FATCA. In the Fatca details section, locate and double-click United states. Registration number field, enter the GIIN number of the Master institution.
Pick out reportable clients.	Click Compliance > Lists > Compliance monitoring > FATCA Manager. Locate and right-click the client. Select Edit details. Click the Reportable? checkbox. Click Save.
Set the Taxpayer identification number (TIN) for all reportable clients.	Bring up the properties of the client. Click the Taxation tab > General. In the Tax registration # field, enter the TIN of the client.

Preparation

See also

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