PricewaterCooper Nigeria has called on all financial institutions operating in the country and the regulators of such institutions to develop a regulatory framework to drive the implementation of the Foreign Account Tax Compliance Act.
A statement on Tuesday stated that the Partner, Advisory, PwC Nigeria, Dr. Andrew Nevin, made this call at a workshop on the ‘Implementation of FATCA’ which was held in Lagos with over 50 representatives of various financial institutions and regulators in attendance.
According to the statement, the FATCA is a United States regulation, enacted in 2010, seeking to detect and deter tax evasion by US citizens with offshore investments and requires foreign financial institutions, trusts and corporations to enter into disclosure compliance agreements with the US Internal Revenue Service.
Nevin noted that although some Nigerian financial institutions had registered with the Internal Revenue Service, there was a need for a regulatory framework to drive FATCA compliance and promptly mitigate the negative consequences of not meeting impending deadlines.
He disclosed that the United States aimed to compel financial institutions across the world to participate by imposing 30 per cent withholding on all qualifying US source income to customers and financial institutions that failed to comply with the requirements of the Act.
The partner was quoted as saying, “The reality is that FATCA is a ‘ticket to the game’ and the global interconnectivity of the financial system is a powerful incentive. The cost of non-compliance is high and ranges from loss of correspondent banking relationships to avoidable business disruptions, which include delayed transactions and counter-party issues, among others.”
He highlighted the benefits of FATCA and the scope of its impact on implementing entities.
He said, “FATCA implementation does come with some benefits. The process for example provides an opportunity for financial institutions to closely scrutinise and refine current Know Your Customer frameworks while improving the overall quality of customer information obtained. The scope and impact of FATCA is significant. It involves governance, process and system changes that will significantly impact the operations of financial services institutions.”
Nevin says that PwC has the knowledge, experience and resources to help clients solve the complex issues that FATCA poses; and is currently supporting some leading financial institutions in Nigeria as they set up systems and processes for compliance.
The Punch
A statement on Tuesday stated that the Partner, Advisory, PwC Nigeria, Dr. Andrew Nevin, made this call at a workshop on the ‘Implementation of FATCA’ which was held in Lagos with over 50 representatives of various financial institutions and regulators in attendance.
According to the statement, the FATCA is a United States regulation, enacted in 2010, seeking to detect and deter tax evasion by US citizens with offshore investments and requires foreign financial institutions, trusts and corporations to enter into disclosure compliance agreements with the US Internal Revenue Service.
Nevin noted that although some Nigerian financial institutions had registered with the Internal Revenue Service, there was a need for a regulatory framework to drive FATCA compliance and promptly mitigate the negative consequences of not meeting impending deadlines.
He disclosed that the United States aimed to compel financial institutions across the world to participate by imposing 30 per cent withholding on all qualifying US source income to customers and financial institutions that failed to comply with the requirements of the Act.
The partner was quoted as saying, “The reality is that FATCA is a ‘ticket to the game’ and the global interconnectivity of the financial system is a powerful incentive. The cost of non-compliance is high and ranges from loss of correspondent banking relationships to avoidable business disruptions, which include delayed transactions and counter-party issues, among others.”
He highlighted the benefits of FATCA and the scope of its impact on implementing entities.
He said, “FATCA implementation does come with some benefits. The process for example provides an opportunity for financial institutions to closely scrutinise and refine current Know Your Customer frameworks while improving the overall quality of customer information obtained. The scope and impact of FATCA is significant. It involves governance, process and system changes that will significantly impact the operations of financial services institutions.”
Nevin says that PwC has the knowledge, experience and resources to help clients solve the complex issues that FATCA poses; and is currently supporting some leading financial institutions in Nigeria as they set up systems and processes for compliance.
The Punch
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