Fenergo, the leading provider of Client Lifecycle Management solutions, has today announced the launch of an enhanced version of its Fenergo Tax Compliance solutions with richer rules content, remediation and reporting functionality to reduce operational overheads and improve global compliance with tax regulations.
Fenergo’s Tax Compliance suite provides a rules-driven process to identify reportable accounts and perform due diligence for every client and account, providing data capture and classification obligations for CRS and FATCA.
Currently being implemented by a number of clients, the enhanced solution addresses a number of specific challenges posed by CRS for financial institutions. Fenergo’s Regulatory Rules Engine has been updated to incorporate intricate jurisdictional-specific rules that ensure complete CRS compliance with all nuances of implementation of CRS for each country.
“Where FATCA was the game changer in tax compliance, the Common Reporting Standard promises to go way beyond FATCA’s remit to ensure global-wide tax compliance,” explains Laura Glynn, Fenergo Global Manager of Regulatory Affairs. “The global lack of harmonization of rules is worrying for financial institutions. Asia, in particular, poses an acute challenge given the fact that they must ensure compliance with 40+ regulators across the region. This is a huge operational undertaking forcing financial institutions to be able to manage each of the rules from every jurisdiction. Even where no obligation to report exists, accounts may still require reporting by the local tax authority to other tax jurisdictions. Therefore, CRS classification needs to be known for this purpose and extend to all accounts and entities”.
With the biggest CRS operational burden expected to be in the remediation and classification of pre-existing accounts, Fenergo has enhanced its rules-driven Remediation Master Case Management and Workflow functionality, designed to simplify the remediation process and maintain and track an easily identifiable subset of entity remediation cases through to completion. The solution is capable of re-using data and documentation collected for other purposes (e.g. KYC, FATCA), which speeds up the time it takes to achieve tax compliance with CRS, and, ultimately, onboard clients faster. “Financial institutions are looking for a trusted partner that will help them comply with all global tax requirements efficiently as possible, added Glynn. “With a team of regulatory analysts actively tracking the changing regulatory and tax landscape, in addition to guidance from our client regulatory forums, Fenergo translates this data into real value-added solutions. Fenergo’s latest enhancements in our Tax Compliance suite of solutions are designed to remove the complexity of tax compliance and provide financial institutions with a roadmap that future-proofs them against future changes”.