Opus launches new FATCA service
Bermuda-based fund administrator, Opus Fund Services has launched a new service for compliance with the Foreign Account Tax Compliance Act (FATCA).
The service will be delivered by the FATCA Service Bureau, a joint service from Markit and Compliance Technologies International (CTI).
Robin Bedford, Opus CEO said that by integrating with the Markit offering, “We can now provide a seamless solution for our clients. This enables required obligations to be met in advance of fast approaching deadlines, thereby avoiding punitive penalties for our clients and their investors.”
Lansing Gatrell, director and co-head of Markit Counterparty Manager, added: “It is an advantage for the funds industry that forward-looking administrators, like Opus, are seeking out solutions to the challenge of FATCA compliance.
“The service we will offer via Opus makes registering with and reporting to the IRS as seamless as possible.”
FATCA requires non-US foreign financial institutions (FFIs) and non-US non-financial entities to identify and disclose their US account holders and members.
To avoid penalties from the US Internal Revenue Service, funds must identify their investors more thoroughly, even if they hold only non-US bank and securities accounts, Opus said.
It is estimated that the law will impact over 300,000 financial institutions and their funds across virtually every asset class.
With the FATCA Service Bureau, Opus said it is offering clients a one-stop solution to FATCA compliance that will classify funds and their investors, validate client documentation, electronically register FFIs, calculate withholdings on behalf of funds and handle annual reporting to the IRS.