AEOI
(FATCA & CRS) Japan 1
STORM-7 CONSULTING ABOUT US
S
torm-7 Consulting (S7C) is an international consulting company that provides premier intelligence, insight and support to global financial institutions. The company's services are offered through a portfolio of services, including: written technical briefings, conferences, training courses and consulting assignments on a range of regulatory, legal and operational issues.
T
hese are delivered globally through a custom worldwide network of consultants and associates who are recognised as being "knowledge-leaders" in their respective specialist fields. Expert profiles of these individuals can be found on the Storm-7 website (www.storm-7.com). Crucially, Storm-7 recognises that the needs of both its client organisations and individual professionals vary considerably. This recognition has resulted in a company ethos, which places the client at the centre. Thus we adapt our services to satisfy individual requirements – ever mindful of delivering our clients a high quality, pragmatic and usable output at a cost effective price.
2
3
INTRODUCTION TO THE FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA)
INTRODUCTION TO THE OECD COMMON REPORTING STANDARD
T
T
he Foreign Account Tax Compliance Act (FATCA) is a piece of legislation introduced into the United States (US) in 2010 as the revenue-raising portion of the domestic jobs stimulus bill, namely the Hiring Incentives to Restore Employment (HIRE) Act. Furthermore, it is a radical new approach to international tax compliance intended to thwart offshore tax evasion by giving the US Internal Revenue Service (IRS) tools to identify US owners of foreign accounts and entities.
T
he FATCA rules are wide-ranging and require global financial institutions, investment entities, national banks and other financial organisations to directly report details on their US clients. FATCA has introduced a series of business and systems requirements that are simple in concept, but will prove difficult and costly for firms to operationalize. The aim for financial institutions is to meet the new compliance burden at a cost that is proportionate to the compliance risk faced. This raises major international issues.
F
irst, the US will in effect require the automatic exchange of tax information about US Persons with foreign financial accounts which may clash with national banking and privacy laws. Under international law the US cannot exert jurisdiction on sovereign states and so the US is essentially exercising the principle of extraterritoriality. Not only will FATCA pose significant operational, legal, and financial challenges for firms, but foreign governments may ultimately suffer from capital flight resulting from an exodus of US citizens from certain countries.
4
he Organisation for Economic Cooperation and Development (OECD) Common Reporting Standard (CRS) is a global standard for Automatic Exchange of Information (AEOI) relating to tax residents' financial accounts that has been developed by the OECD, working with Group of Twenty (G20) countries, and also in close cooperation with the European Union (EU). The standard is comprised of the CRS, which contains standardised due diligence and reporting rules that apply to financial institutions, together with the Model Competent Authority Agreement (Model CAA), which contains rules on the exchange of information. It sets out a minimum standard of information that is to be exchanged for jurisdictions that are signatories of the Multilateral Competent Authority Agreement (MCAA) on AEOI. Each jurisdiction retains the sovereign right to revise provisions within the agreement.
T
he OECD CRS is based largely on the intergovernmental legislative approach to combating tax evasion that has been adopted under the United States (US) Foreign Account Tax Compliance Act (FATCA). The OECD CRS aims to combat offshore tax evasion and to put in place minimum standards for jurisdictions around the world to exchange information, decrease operational costs, and increase regulatory efficiency in participating jurisdictions. In 2017 forty-nine (49) jurisdictions committed to first exchange information, and in 2018 fifty three (53) jurisdictions committed to first exchange information. The CRS is applicable to all Reporting Financial Institutions (RFIs) but is not applicable to Non-Reporting Financial Institutions (NRFIs).
5
The Training Course T
his two day intermediate to advanced training course will provide delegates with a comprehensive understanding of the new United States Foreign Account Tax Compliance Act (FATCA) requirements by combining theory with practice and by incorporating interactive learning elements. The course aims to demystify the complexity of both FACTA and the OECD Common Reporting Standard (CRS) frameworks. The course Expert Trainer will ensure that delegates fully understand the operational impact that FATCA and the OECD CRS will have on the business and on clients as well as guiding delegates through necessary adaptation processes, compliance solutions, and the complexities of understanding the way the FATCA and OECD CRS frameworks operate around the world.
Training Course Suitable for • Chief Executives • Chief Financial Officers • Chief Risk Officers • Compliance Officers and Staff • Executive Board Directors • FATCA Responsible Officers • General Counsel • General Managers • In-House Legal Counsel • Investment Fund Managers • Non-Executive Board Directors • Risk Management Officers and Professionals • Trust Administrators • Trustees
6
EXPERT TRAINER
R
odrigo Zepeda is Co-Founder and Managing Director of Storm-7 Consulting.
He is an expert in a very broad range of regulatory ompliance frameworks such as FATCA, the OECD CRS, MiFID II, MAD 2 MAR, PSD2, CRD IV, Solvency II, OTC Derivatives, CCP Clearing, PRIIPs, BRRD, AML4 and the GDPR. He holds a LLB degree, a LLM Masters Degree in International and Comparative Business Law, and has passed the New York Bar Examination. He was an Associate (ACSI) of the Chartered Institute for Securities & Investment from 2004 to 2014 and is now a Chartered Member (MCSI). He has created and delivered numerous conferences and training courses around the world such as ‘FATCA for Latin American Firms’ (Santo Domingo, Dominican Republic, Panama City, Panama), ‘MiFID II: Regulatory, Risk and Compliance (London, United Kingdom (UK), and ‘Market Abuse: Operational Compliance’ (London, UK). He has also delivered numerous in-house training Courses around the world to major international financial institutions such as the Abu Dhabi Investment Authority (MiFID II: Operational Compiance, Abu Dhabi, The United Arab Emirates), the United Nations Principles of Responsible Investment (MiFID II: Final Review, London, Uk), and CAF, the Development Bank of Latin America (Swaps and Over-the-counter Derivatives, Lima, Peru). He is a Reviewer for the Journal of Financial Regulation and Compliance and has also published widely in leading industry journals such as the Capco Institute’s Journal of Financial Transformation, the Journal of International Banking Law and Regulation, as well as e-books on derivatives law. Noted publications include “Optimizing Risk Allocation for CCPs under the European Market Infrastracture Regulation”; “The ISDA Master Agreement 2012: A Missed Opportunity”; “ The ISDA Master Agreement: The Derivatives Risk Management Tool of the 21st Century?”; “To EU or not to EU: that is the AIFMD question”; and “The Industrialization Blueprint: Re-Engineering the Future of Banking and Financial Services?”.
7
THE TRAINING COURSE KEY BENEFITS • Advanced knowledge and understanding of the FATCA and Model IGA frameworks; compliance requirements; the interaction of FATCA with trusts and passthru payments; and similarities and differences between FATCA and the OECD CRS due diligence and reporting obligations. • Extensive Pre-Course Questionnaire to identify delegate's key conference objectives. • Comprehensive Training Course documentation (100+ page Training Manual, Definitions Brochure, Supporting Materials, colour FATCA PowerPoint presentations, Charts and Diagrams). • Post-course Expert Trainer follow-up to guarantee all key course objectives have been met.
BOOK NOW
Training Course Programme Day 1
1
SESSION 1
An Introduction to the FATCA Regulatory Framework
■ Key FATCA Aims, objectives, milestones. ■ FATCA Global Implementation and Impact. ■ FATCA Definitions (FFI; P-FFI; RDC-FFI; CDC-FFI; NFFE; GIIN; FDAP Income; RO; IGA; USWAs; Gross Proceeds; Passthru Payments; Grandfathered Obligations; Active Income; Passive Income).
2
SESSION 2
3
SESSION 3
4
SESSION 4
The Three Pillars of FATCA: PART I
■ PILLAR I: FATCA Classification, Direct US and Indirect US Accounts, Regulatory Exemptions. ■ Due Diligence for Pre-Existing and New US Individual and Entity Accounts. ■ Classifying Financial Entities and Implementing US Indicia Requirements.
The Three Pillars of FATCA: PART II
■ PILLAR II: FATCA Documentation and Reporting Obligations for FFIs and NFFEs. ■ An Analysis of FATCA Reports, FATCA Reporting and Recalcitrant Accounts. ■ PILLAR III: FATCA 30% Withholding Tax Penalty, Withholding Payments, Civil and Criminal Penalties for Responsible Officers.
Analysing US FATCA Model 1 and Model 2 Intergovernmental Agreements and FFI Agreements
■ MODEL 1 (Reciprocal 1A); MODEL1 (Non-Reciprocal 1B). ■ MODEL 2 (No Pre-existing Tax Information Exchange Agreement or Double Tax Convention Required); MODEL 2 (Pre-existing Tax Information Exchange Agreement or Double Tax Convention). ■ IRS FFI Agreement (Form 8957).
Contact: Client Services Telephone: UK+44(0)2078460076 Email: client.services@storm-7.com Online: www.storm-7.com
8
9
Training Course Programme Day 2
5 6 7 8
SESSION 5
Analysing the OECD CRS
■ The Convention on Mutual Administrative Assistance in Tax Matters. ■ Analysing the Standard for Automatic Exchange of Financial Account Information (Model CAA)(Common Reporting and Due Diligence Standard). ■ Reporting and Due Diligence Standards, Indicia Searches, Address Tests.
SESSION 6
FATCA and the OECD CRS
■ Comparing FATCA and CRS reporting and due diligence obligations. ■ CRS special rules for non-participating (automatic exchange) investment entities. ■ Assessing CRS Administrative and IT infrastructures, and confidentiality and data safeguards.
SESSION 7
FATCA and the OECD CRS Operational Compliance
■ FATCA Due Diligence and IRS Forms Analysis (W-8, W-8BEN; 1042; 1042-S). ■ Identifying and Assessing Compliance and Non-Compliance Costs. ■ Responsible Officer preparation for IRS Due Diligence certifications, Developing Effective FATCA and the OECD CRS Compliance Frameworks.
SESSION 8
Review of FATCA and the OECD CRS Compliance Technologies
■ A comparative and strategic analysisof a range of FATCA software vendor solutions, including software solutions available from: (1) Vizor; (2) Thomson Reuters; (3) Newgen; (4) Bearing Point; (5) TAINA Technologies; (6) Capgemini; (7) IRS; (8) IBM.
10
11
©COPYRIGHT 2018 | STORM-7 CONSULTING | ALL RIGHTS RESERVED
12
Storm-7 Consulting Limited, Level 24/25 The Shard, 32 London Bridge Street