Technology will play a key role in the successful implementation of the FASTER directive. Though key details have yet to be clarified, organizations can prepare by investing in technology that will help them comply with FASTER and other recent and future tax regulations.
FASTER shares common elements with other recent regulatory initiatives, such as the OECD and Finnish TRACE and the German Mikadiv Reporting Regime. Xceptor enables business users to easily configure new workflows that can be readily extended to other markets with minimal efforts.
FASTER and other recent regulations demand more data, particularly around transaction history and beneficial ownership. Xceptor enables you to develop a data model that maps key data sources and dependencies to FASTER requirements so you can easily fulfill regulatory requirements.
Regulators are also increasingly demanding data to be transmitted and captured through the custody chain, requiring financial intermediaries to obtain data from clients of their clients. With Xceptor, financial intermediaries can trigger requests for mandatory data elements as part of client onboarding and account opening, ensuring that relevant tax data is captured upfront.
The introduction of E-TRCs has enormous potential to accelerate tax document workflows. However, non-EU investors may need to continue providing paper-based documents to access tax relief, so financial intermediaries will need to maintain both digitized and paper-based processes. Xceptor’s AI-powered document intelligence solution enables firms to automate the handling and validating paper-based documents.
Technology will play a fundamental role in helping financial intermediaries address the challenge of collecting and reporting on new data throughout the custody chain. With Xceptor, firms can proactively trigger data requests, handle large volumes of data, and cross-check and validate data records to produce required reporting.
FASTER establishes ambitious timelines for investors to access tax relief, either at source or within a maximum of 60 days. Technology will play a crucial role by automating heavily manual processes, digitizing documents, and standardizing processes. Xceptor’s tax solutions enable firms to capture this opportunity, transform tax processes in line with FASTER, and ultimately differentiate their withholding tax relief service offerings.
Product enhancements such as the automation of tax processes, which we will look to replicate in other markets, directly benefit our foreign institutional clients such as global custodians, sovereign wealth funds and asset managers by providing faster turnaround times and improved accuracy.
Contact us to learn how we can help you prepare for the transition.
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