Markit and Compliance Technologies International (CTI) have developed a comprehensive solution for all non-US domiciled asset managers and structured investment vehicles that must comply with FATCA.

The Markit Counterparty Manager, FATCA Service Bureau combines US tax law expertise, client documentation review, IRS registration and tax form validation and reporting. All files for Know Your Customer and Chapter 3 compliance are hosted on Markit Counterparty Manager, a highly secure document hosting and counterparty provisioning environment.

For the thousands of funds planning to register as a Foreign Financial Institution (FFI) under the regulatory requirements, FATCA Service Bureau provides the highest level of domain expertise and operational efficiency in a low-cost solution.

FATCA was recently enacted as part of the Hiring Incentives to Restore Employment Act. It is a major addition to US withholding tax obligations for both US and non-US companies. The new rules affect both the financial industry and all withholding agents, including US operating companies.

FATCA imposes a new 30 percent withholding tax on certain US payments made to non-compliant funds. To avoid the penalty, funds must identify their investors more thoroughly, even if they hold only non-US bank and securities accounts.