Ragini Communications Inc.
Foreign Account Tax Compliance Act (FATCA) Solution   

The Foreign Account Tax Compliance Act (FATCA), which comes into effect on July 1 2014, is intended to reduce the levels of tax avoidance by U.S. citizens and entities through Foreign Financial Institutions (FFIs).

RCI's FATCA Solution Satisfy US/IRS regulatory requirements with key benefits:

  • Report (IRS forms: W-8BEN, W-8BEN-E & W-9 withholding), US Indicia check, predefined rules, alerts, reporting.


Provisions commonly known as the Foreign Account Tax Compliance Act (FATCA) became law in March 2010 :

  • FATCA targets tax non-compliance by U.S. taxpayers with foreign accounts.
  • FATCA focuses on reporting:

    • i.  By U.S. taxpayers about certain foreign financial accounts and offshore assets.

    • ii. By Foreign Financial Institutions about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a substantial ownership interest.

    • iii. The objective of FATCA is the reporting of foreign financial assets; withholding is the cost of not reporting.

  • Address challenges of customer identification, reporting and withholding.


Key Capabilities

  • Assess entire customer base against FATCA indicia to identify customers as US persons, non-US persons or recalcitrant.

  • Annual reporting on identified US persons –to include name, address, tax payer identification number, account balance and details of the transaction.

  • Withhold 30% tax on certain US sourced payments paid to recalcitrant account holders and non participating Financial Institutions.

RCI's FATCA solution can help companies automate creating, printing, auditing and distributing the complete range of W-9, W-8BEN and W-8BEN-E forms.

  • Address challenges of customer identification, reporting and withholding.

  • Achieving a single view of customers is a key benefit of implementing this solution.


Category Feature
Predefined Rules Conduct a detailed review for Account Balance of $ 250,000 or more (For Entity)
  Account Balance of $ 1,000,000 or more (High Value Individual Account) and Customer whose Relationship Type is Private Banking only
  Account Balance between $ 50,000 to $ 1,000,000
  Account Balance of $ 50,000 or more with account documented as U.S.
Alert Manager Provides ability to review the alerts generated and determine if further investigation is required or dismiss an alert. Includes ability to Track source of alerts and issues tracking, review alerts
  OFAC Check (check against three OFAC lists - ADD, ALT & SDN)
  US Indicia check (check if account has "Indicia" of U.S status, such as a U.S. mailing address)
Case Due Diligence Provides ability to further research alerts converted to case
  Identity Verification (IDV) check using Experian Authentication Level 1
  Manage IRS Forms (W-8BEN, W-8BEN-E & W-9), save and print forms in PDF
  Attach Questionnaire / Surveys as part of research for High Value Accounts
  Manage Evidences related to research
  Classify account as US, Disclosed-US, Non-US or Recalcitrant
Withholding For all Recalcitrant accounts, withhold taxes on yearly basis based on tax withholding formula to calculate Passthru percentage and total tax amount
Data Warehouse Process data file from multiple internal sources
  Process data file from multiple external sources
  Process data stream from multiple internal sources
  Process data stream from multiple external sources
Other Common Security Module
Integration of SmartyStreets Third Party API for US Address Verification
Audit Manager to log all user actions
Agency Compliance

Internal Revenue Service (IRS)

For IRS compliance, data for use by the following will be generated:
  • IRS Form W-9

  • IRS Form W-8BEN

  • IRS Form W-8BEN-E

Data Warehouse provides enhanced reporting. Key out of box report includes:

Customers who match rule criteria
No Substantial US Owners
Substantial US Owners
List of Recalcitrant accounts and Total taxes withheld
List of FATCA Classification Status for Accounts
Alert Lifecycle

Process & Data Approach

Predefined FATCA Rules execution

List of predefined FATCA rules for data processing.

Alert Manager

List of Alerts generated after executing predefined FATCA rules against data loaded.

Perform US Indicia Check

Verify if an account has "Indicia" of US status, i.e. US mailing address, US Place of Birth, US Phone #, US citizenship or permanent residency. Different US Indicia checks are used for individual and entity accounts.

Complete Alert Research & Create Case for Exceptions

Complete Alert Research and decide whether alert should be dismissed or converted to case for further research.

Create wizard based IRS forms

Our solution provides wizard as data entry interface for Form W-9, W-8BEN & W-8BEN-E with extensive support of calculated fields and pre-populated data points.

Assign FATCA Classification

Our solution provides FATCA withholding statement regarding the portion of each payment with status Disclosed U.S , Recalcitrant / NPFFI , PFFI , US Account.

Initiate Withholding for Recalcitrant Accounts

Calculation for total amount of withholding on payment of NPFFI.

Report data to IRS

The data in following reports will be transmitted to IRS.

  • Customers who match rule criteria

  • No Substantial US Owners

  • Substantial US Owners

  • List of Recalcitrant accounts and Total taxes withheld

  • List of FATCA Classification Status for Accounts

  • Alert Lifecycle


Summary of Audit Per Application


FFI | Deemed Compliant FFI | Excepted FFI | Participating FFI | Non-Participating FFI | Responsible Officer | Passthru Payment | Excepted NFFE | U.S. Owned Foreign Entity | U.S. Account | Foreign Account | Substantial U.S. Owner | Recalcitrant Account | Specified U.S. Person | U.S. Indicia | Withholding Agent | Pre-Existing Account | Withholdable Payment | NFFE| FATF | KYC | IGA | Form W-9 | Form W-8 | Form W-8BEN-E

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