Many of you will have recently been through the arduous task of meeting the deadlines for FATCA and CRS submissions (30 June for the Channel Islands, 31 July for Cayman and 23 August for Bahamas). But no sooner has one deadline been met, another looms on the horizon, and therein lies one of the many challenges facing financial institutions – keeping fully up to date with the varied and increasingly complex reporting regimes of the 100 plus participating jurisdictions in order to remain fully compliant with their individual requirements.
The Automatic Exchange of Information (AEOI) was implemented as a standardised protocol for exchanging tax information that would increase transparency and reduce the impact of global tax evasion. FATCA reporting submissions commenced in 2015, followed by the first Common Reporting Submission (CRS) information exchanges in 2017.
The CRS reporting landscape is constantly evolving as new jurisdictions sign up to the regime or the reportable data is extended and/or changed. The increasing level of granularity of required data can leave organisations open to high levels of risk if they don’t have the systems, infrastructure and levels of expertise in place.
Many of the biggest issues faced by organisations relate to data capture and management – both in terms of quantity and quality. In our experience, many can struggle to capture and maintain accurate data that meets the demands of real-time reactivity and gives enough detail to meet the reporting standards required by regulators. Outdated technology, combined with manual interference, inevitably leads to data inaccuracies and gaps and the consequent costly risk of non-compliance.
That’s why financial organisations are seeking alternative business models to mitigate risk, make financial savings and concentrate on their core business.
Here are some reasons why outsourcing might be worth thinking about:
Cost savings
Outsourcing is a cost-efficient option. There are significant savings to be made on recruiting and retaining staff with the up-to-date experience and expertise required in the ever-changing complex landscape.
Access to expertise
Our team of experts has multi-jurisdictional experience and expertise as well as in depth knowledge of the reporting requirements. You gain access to a rich talent pool of experienced practitioners and cutting-edge technology without the associated costs.
Time saving
We can take some of the repetitive, labour-intensive tasks off your hands, freeing up your valuable time to concentrate on your own business function and growth.
Scalability
An outsourcing provider can easily accommodate any increase or decrease in volumes as required, ensuring you do not have to face challenges with recruitment (or redundancies).
Focus on core competencies
By outsourcing technical functions to a specialist partner, you can allocate human and financial resources more strategically. A focus on a company’s core business functions will directly contribute to growth and facilitate innovation in an ever-changing market.
Mitigate risk
Organisations often have limited qualified resources, leading to high dependency on very few specialists and exposing them to higher levels of risk. In addition, outsourcing these key functions ensures that they remain appropriately independent of the core business.
Why consider JTC as an outsourcing partner?
This year, within our Tax Compliance & Regulatory Reporting team, we completed more than 4,000 filings for FATCA/CRS reporting deadlines across multiple jurisdictions, to support our clients in meeting their reporting obligations this year.
Data security and confidentiality are paramount in our operations. We have implemented state-of-the-art IT infrastructure and cybersecurity measures, including encryption, secure data transfer protocols, and strict access controls. Our team is also trained in data protection best practices to ensure that all client information is handled with the utmost care and confidentiality.
We are proud to work with a number of clients who are already benefiting from our financial and regulatory reporting outsourcing services. They range in both size and sector and include a large multi-national banking organisation and small trust companies.
For further information, please contact Emma Menzies.
IMPORTANT INFORMATION: JTC Group does not provide legal, tax or investment advice and no information provided by JTC Group should be construed as such.
