To help financial institutions prepare for Foreign Account Tax Compliance Act provisions that will begin to go into effect in 2014, Oracle (ORCL) Thursday introduced Oracle Financial Services Foreign Account Tax Compliance Act Management software.
Under FATCA, all financial institutions — U.S. and foreign — must classify account holders as either U.S. or non-U.S. based and report directly to the United States Internal Revenue Service specific information about financial accounts held by U.S. taxpayers or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. It will require organizations to analyze existing customers, update customer information and onboarding processes and expand reporting capabilities.
The new software from Oracle, which is based in Redwood Shores, Calif., is said to assist with account holder onboarding and categorization, due diligence and reporting. The software consolidates FATCA-specific data in a single repository to provide an enterprise-wide view of customers and enable banks to centrally manage the compliance process.
"With FATCA slated to begin to go into effect 2014, financial institutions around the globe realize they must begin to take action now to prepare for compliance," said S. Ramakrishnan, group vice president and general manager, Oracle Financial Services Analytical Applications, in a press release. "They are looking for solutions to streamline the compliance process with minimal impact on their existing IT environment."