Client: Multinational banking and financial services holding company
Industry: Banking, financial services
Products/Services: Retail banking, corporate banking, investment banking, mortgage loans, wealth management, credit cards, finance and insurance
Areas of operations: Global
The Foreign Account Tax Compliance Act (FATCA) is a legislation introduced by the United States government to help counter US tax evasion by encouraging better reporting of FATCA reportable customers’ information. FATCA intends to increase transparency for the Internal Revenue Service with respect to US persons that may be investing and earning income through non-US institutions. While the primary goal of FATCA is to gain information about US persons, FATCA imposes a withholding tax where the applicable documentation and reporting requirements are not met.
The client was committed to become fully FATCA-compliant in all countries and territories where they operate. The main challenge was to meet the stringent timelines and avoid huge penalties for not adhering to FACTA implementation guidelines.
Wipro implemented a FATCA-compliance solution for the client with increased due diligence for commercial banking customers in stipulated timelines and in accordance with legal and compliance requirements, leveraging ETL, data integration, and database management tools.
Wipro implemented a commercial banking-remediation compliance solution for four European countries in record time of 12 months. This helped the bank in timely regulatory reporting, leading to increased reputation and trust with the bank’s clients, shareholders and media.
Wipro identified FATCA reportable customers by establishing complex algorithms and data analysis, leveraging various AI techniques, which helped timely regulatory reporting for the client and made it FATCA-complaint. - Raman Awal, General Manager, Information Management – Data, Analytics & AI, Wipro Limited.