October 9, 2013
NICE Actimize, a NICE Systems (NASDAQ:NICE) business and the largest and broadest provider of a single financial crime, risk and compliance software platform for the financial services industry, has identified that financial firms are still struggling with multiple challenges connected to the complex Foreign Account Tax Compliance Act (FATCA) regulation slated for rollout in
. According to a recent poll conducted by the firm, more than 55 percent of participants rated "average" to "poor" their understanding of FATCA legislation - an indicator that financial institutions will need to push harder to stay on pace with impending FATCA implementation deadlines.
NICE Actimize, with more than a decade of experience in providing global compliance and regulatory solutions to leading financial institutions, conducted its FATCA Financial Services Poll among 170 individuals from 100 financial services firms which participated in a targeted webinar held during the spring. With 70 respondents to the survey, nearly half the poll's respondents came from large global institutions. The mix of geographies reflected in the respondents provides insight into the different challenges of FATCA globally, as withholding and reporting varies among US-based financial services firms and foreign-based firms.
Analysis of the poll results indicated a number of areas that continue to pose major challenges, including the lack of clarity around regulatory requirements, scarcity of FATCA expertise, operational impact and data issues. With most organizations still far from completing FATCA implementation, the poll suggests that these issues may be hindering firms from making progress and from completing final implementation of FATCA.
The poll results specified three areas surrounding FATCA rules and requirements that require additional clarity: reporting, beneficial ownership, and executing additional tax withholding were the dominant answers. Additionally, some respondents noted that business process complexities and issues surrounding the collection of customer documentation and identification were also critical.