Convey Compliance Systems has signed a technology and consulting agreement with Trillium Software to enable financial institutions accelerate compliance with the Foreign Account Tax Compliance Act (FATCA).
Under the FATCA regulation, foreign financial institutions are required to accurately identify, classify and report all clients with US indicia to the US Internal Revenue Service, or face severe penalties.
Trillium Software said that through the integration of its self-service data assurance capabilities into Convey’s FATCA tax information reporting (TIR) platform, financial institutions will be able to leverage an FATCA solution to expedite compliance while minimizing associated costs, resources and risks.
Trillium Software added that the integrated Trillium-Convey FATCA solution will enable financial institutions to access, understand, gain visibility and take control of all client data critical to FATCA compliance by utilizing self-service data assurance capabilities; and report directly to the IRS or other global tax authorities and comply with reciprocity reporting.
Furthermore, the financial institutions will also be able to identify over and under-withheld accounts; track remittance and reporting deadlines and requirements; and adapt to future FATCA or country requirements with a flexible solution.
Michael Hutnyan, executive vice president of sales and solution strategy at Trillium Software, said: "By offering a robust FATCA solution that not only expedites the compliance process, but also minimizes costs and assures data integrity, we can help financial institutions avoid penalties while enhancing client service and communication."