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Jonathan Camhi
Jonathan Camhi
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5 Insights On Industry Preparations for FATCA

A recent study shows that banks are pushing forward on FATCA compliance but are in need of clarification from regulators about some requirements.
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One positive finding from the research is that some of the banks involved in the survey are quickly reading up on what FATCA will require of them. Just less than half of the respondents (45%) said they had good or excellent understanding of what they’ll need to do to achieve FATCA compliance. That number may seem a little low at first, the study said. But FATCA’s rules were just finalized a couple of months ago, so it’s actually a positive sign that nearly half of the institutions feel confident in their understanding of compliance, the study concluded.

 

Jonathan Camhi has been an associate editor with Bank Systems & Technology since 2012. He previously worked as a freelance journalist in New York City covering politics, health and immigration, and has a master's degree from the City University of New York's Graduate School ... View Full Bio

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Ivy Schmerken
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Ivy Schmerken,
User Rank: Author
11/2/2013 | 5:05:25 PM
re: 5 Insights On Industry Preparations for FATCA
More than half (53%) of survey respondents have a separate budget for FATCA compliance, indicating this is an important regulation for them. Given that banks are dealing with Dodd Frank in derivatives as well as Basel III, their compliance budgets are juggling multiple projects.Yet 43% of the respondents said they are spending as much as 20% of their compliance budgets on FATCA.
KBurger
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KBurger,
User Rank: Strategist
11/1/2013 | 7:11:29 PM
re: 5 Insights On Industry Preparations for FATCA
I guess the good news is that 80% or respondents are making progress in achieving compliance. But based on the other answers, it may be that some of them aren't sure if they are complying with the right things. The research doesn't say who at the bank typically is leading these efforts, clearly there are some issues around internal communications and education -- the problems aren't just with the regulation itself.
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
11/1/2013 | 7:09:09 PM
re: 5 Insights On Industry Preparations for FATCA
Since FATCA's requirements were just recently finalized a lot of banks are still trying to figure out what it will take to reach compliance. Sounds like it's going to be a scramble. The good news though from the survey is that banks are setting aside the money to pay for the expense of compliance.
Byurcan
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Byurcan,
User Rank: Author
11/1/2013 | 6:23:17 PM
re: 5 Insights On Industry Preparations for FATCA
I'm not surprised that meeting compliance timelines was listed as one of the top concerns. With dense, sweeping regulations such as this (and Dodd-Frank for example) there is often confusion about when certain parts of it come into effect. Hopefully, financial institutions have done their homework on FATCA implementation.
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