Fatca's compliance demands spell trouble for outsourcers
US banks’ reliance on third-party outsourcing is about to collide headfirst with the wide-reaching compliance requirements of the Fatca anti-tax evasion law. Banks focusing on their own compliance shortfalls need to start looking at their suppliers too – or risk falling foul of the new law
When US Congress enacted the Foreign Account Tax Compliance Act (Fatca) in 2010, it may not have anticipated the compliance obligations this would impose on the large number of financial institutions around the globe that have found themselves caught in this complex web.
Foreign financial institutions (FFIs) and US withholding agents have invested heavily in programmes to comply with the anti-tax evasion regulation, which, in many cases, is likely to involve reliance on third-party suppliers for
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