FATCA Compliance

FATCA Compliance

Ease the burden of having to identify instrument flags and ensure for a speedy audit with high-quality, on-time FATCA Compliance data collected by SIX reference data specialists.

Enacted under the US Hiring Incentives to Restore Employment (HIRE) Act in 2010, the FATCA provisions represent a significant extension of the current Qualified Intermediary (QI) regime already in effect in the US. All FFIs are requested to register themselves with the US Internal Revenue Service (IRS).

The US law is aimed at foreign financial institutions (FFIs) and other financial intermediaries to ensure full FATCA compliance by US persons (citizens and residents) and avoid tax evasion through use of offshore accounts. 

FFIs failing to meet this request will be subject to a 30% withholding tax on income from US sources, including dividends and interest paid by US corporations. 

FATCA updates

Our FATCA compliance solution

SIX Financial Information's high-quality and on-time data takes care of instrument flagging enabling you to focus your efforts on improving systems and processes. Rest assured that SIX is closely following regulatory developments and perform updates to the FATCA data as needed.

SIX Financial Information will provide the international financial industry with the data required in order to comply with FATCA:

  • Instrument Level Tax Status: “In scope”. “Exempt short-term”, “Exempt grandfathered” and “In scope materially modified security” and associated withholding rates.

    We flag certain securities which could potentially lose their “grandfathered” status. In order to always ensure the correct FATCA status, we systematically collect and analyze corporate actions (e. g. change in yield, change in obligor or security, etc.). Depending on the outcome of the analysis, instruments which lose their grandfathered status are marked as “in scope materially modified security”.

  • Institution Level Classification & Status: FFI registry status is based on the IRS-issued Global Intermediary ID Number (“GIIN”), which is cross-referenced with many other local or international institutional identifiers, including the Legal Entity Identifier (“LEI”). 

Key benefits

Eases the burden on you having to identify instrument flags

Less manual interventions, interfaces and errors ensures for a more seamless and speedy audit

Reduced costs of compliance with easy access to our extensive and reliable tax and compliance data

Ongoing expert support

As an active participant in industry discussions on FATCA and other important cross-border taxes and regulations, SIX Financial Information host ongoing workshops with leading international banks and other stakeholders in order to ensure comprehensive and timely support for our clients. 

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Achieve FATCA Compliance now

Achieve FATCA Compliance now

Achieve FATCA Compliance now