Regulatory Compliance & Data

Tax Compliance

Partner with eClerx Markets and Comply Exchange to Mitigate the Risks Associated with Tax Regulations

Over the past decade, stringent requirements have been imposed on private equity firms, fund administrators, brokers and other intermediaries.

Chapter 3 is a tax withholding regime that requires withholding on a payment of US source income such as dividends to many non-US persons, including non-resident alien individuals, foreign entities, and governments.

The Foreign Account Tax Compliance Act (FATCA) is designed to prevent US taxpayers from avoiding tax by investing through non-US financial institutions and offshore investment vehicles.

The Organization for Economic Cooperation and Development (OECD) issued a Standard for Automatic Exchange of Financial Account Information (AEOI), using the Common Reporting Standard (CRS).  Further increasing the diligence by FIs to identify reportable accounts that will need to be exchanged with other tax authorities.

These regulations significantly increase the complexity and need for obtaining, validating and maintaining complex tax documentation and certification. eClerx Markets and Comply Exchange apply extensive domain knowledge, robust workflows and leading tools to assist with documentation solicitation and management, providing data verification, system remediation, reconciliation, ongoing management and testing services to ensure accurate tax calculation and reporting for Chapter 3,  FATCA and AEoI compliance.

Our clients have seen an incremental lift in the following areas:

  • 40% cost reduction when using a blend of onshore and offshore delivery models
  • 60% increase in efficiency of issue management
  • Near eradication of form validation errors with the use of automated processes
  • Comprehensive MI and reporting suite to cover external and internal audit requirements

Forms Exchange

  • Online submission of E-Forms W8, W9 & Self Certs
  • Mass outreach capabilities
  • Configurable submission experience

Comply Administration

  • Central document repository
  • Withholding tax calculator
  • Visualisation tool – Build complex fund structures

Information Exchange

  • Investor portal
  • Notification processing
  • Exchange of information
KYC Remediation – Case Study
Strategic KYC remediation program to eliminate Anti-Money Laundering (AML) risk identified by regulators post an audit of the clients’ KYC due diligence process
Challenges
  • Key risks and concerns identified by the regulators post an audit of the banks’ due diligence process
  • Lack of a global due diligence review policy and no defined periodic renewals process
  • Execute a large scale remediation program to bridge gaps in client account data and documentation
eClerx Markets Solution
  • Deployed 1 PM and 4 senior consultants in NY supported by 13 AML analysts in India
  • Assessed and made recommendations on banks’ AML policies and procedures
  • Designed execution checklists and procedures for execution analysts
  • Designed due diligence guidance for the bank
  • Performed gap analysis across ~1,750 accounts. Secondary review performed onshore
  • Gap analysis reports published to the RMs. Collaborated with RMs to source missing data/ documents
  • Setup a helpdesk for queries/ escalations.
  • Reviewed and uploaded data/ docs to bridge gaps
  • Published reports to monitor status and open risks
Results

Successfully remediated 1,750 accounts within 3 months while minimizing program cost by leveraging hybrid staffing model

Enabled measurement of data issues/ trends leveraging metrics

Helped develop a policy roadmap for periodic account reviews