Preparing for GATCA
According to a WKFS study that surveyed 89 respondents from 44 FIs across APAC in September 2014, less than 25 percent of them were fully compliant to FATCA even though the deadline is March 2015. More than 60 percent of the respondents were also found to have only started implementing FATCA this year. The late implementation might be due to FIs struggling with the lack of FATCA clarity (40 percent), and data management issues (more than 30 percent), Delbaere reasoned. In terms of data management issues, FIs might find it challenging to ensure that they can always obtain the correct data in the required state for onward processing and reporting, he added.
To avoid the recurrence of the same situation, he advised FIs to start their efforts to comply with GATCA as soon as possible. They should also focus more on understanding GATCA and managing data as GATCA is expected to be more complex than FATCA since it involves reporting to more countries.
While it may seem like a good idea to assign the FATCA project team to work on GATCA, FIs may risk having lacklustre team members as they might be tired and bored of FATCA. Delbaure thus suggested creating a new project team for GATCA, consisting of key talents who have worked on FATCA compliance and new team members. Experienced team members will be able to better educate the new members on FATCA and GATCA while the new blood will bring in fresh ideas, said Delbaure.
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