The road to FATCA and the Fourth EU Directive– Customer Due Diligence requirements revisited

tax-evasion-226719_960_720Financial institutions are faced with the challenge of aligning their existing Know Your Customer (KYC) due diligence processes to meet FATCA requirements. Given that the upcoming deadline for FATCA in 2014 and other likely amendments for customer due diligence requirements, institutions are in a good position to perform an effective redesign of their KYC procedures. Accommodating for rules-based FATCA requirements and making provisions for risk-based due diligence requirements which will most likely come into force at the latest when the Fourth EU Anti-Money Laundering Directive is enacted is the prominent challenge. If mastered successfully however it has the opportunity to increase efficiencies and improve compliance processes and procedures.

This article outlines the background and international discussions regarding tax evasion and the ongoing debate to curtail it, and seeks to touch upon the impact it will have in dealing with should be: high-risk clients in regions, which are considered high risk for tax evasion.


Full article can be found here.