Tech mahindra
Tech mahindra

Risk & Compliance

FATCA was enacted in 2010 by the United States to improve tax compliance of US citizens and entities with offshore accounts. Foreign Financial Institutions (FFIs) are mandated to report to the IRS the details of US person accounts they handle or be subject to a 30% penal withholding tax on their US-sourced income. The IRS intends to cut down tax evasion in billions over the next decade by implementing FATCA.

This mandate poses the following challenges:

  • Data Integrity
  • Evolving requirements with new IGAs coming into force.
  • Complexity of identifying transactions for Withholding and Pass thru payments calculation.

We enable financial institutions to overcome these challenges; hence in partnership with Dion Global we have developed FATCA TRAC. Some of the features of this product are:

  • Off-the-shelf solution that reduces deployment and adoption cycles.
  • Plug-and-play solution to ensure minimal impact to existing systems.
  • Scalable and configurable rules engine that can respond to changing regulations.
  • Client /Instrument data Management & FATCA eligibility and Withholding Tax Management.
  • Reporting to the IRS, fiscal authorities, clients and regular MIS.
  • Service layer to receive and send data to internal systems such as KYC or core processing systems.

Some of the benefits of our FATCA solution are:

  • Addresses Information overlap across emerging regulations and Leverages technology in data warehousing, transformation and mapping for advanced regulatory reporting frameworks like AEOI ,CRS etc
  • Module based deployment, based on FATCA phases to avoid redundant costs and efforts.
  • Integration of cutting-edge FATCA solution with various core systems across multiple geographies and LOBs for unified compliance.
  • Ability to be FATCA compliant without substantial changes to existing systems and processes by quickly integrating source systems.

In the area of anti-money laundering, regulators have stressed the need for firms to detect patterns of Money laundering over time. Such patterns should be detectable in one account, households of accounts, and across all customer accounts.

Financial regulations and guidance increasingly direct companies to assess risks and tailor compliance systems to address the company’s own risk analysis. Regulators now expect firms to report violations by themselves, saying they will look far more kindly on self-reported violations than those violations that come to the attention of regulators through tips or examinations. Regulators also expect to see clear audit trails, documenting the origin of suspicious activity, locking down the data, and outlining the steps a company takes to investigate and resolve alerts.

Offerings under AML

KYC

  • Customer Due Diligence
  • Watchlist Filtering
  • Risk management

AML Transaction Monitoring

  • Suspicious Activity Monitoring
  • CTR Processing & Automation
  • Integrated case management
  • Fraud Risk

Lack of adequate liquidity was the main reason which brought about the demise of some of the biggest banks of their times in 2008-09. In the light of the events of 2008-09 regulators worldwide have made the reporting of liquidity number a very detailed and stringent process.

Under Basel III liquidity risk has been addressed in a detailed manner with the introduction of LCR & NSFR reporting requirements. Basel III also addresses the issue of adequate liquidity during times of distress and the quality of the liquid assets at hand.

Tech Mahindra can helps banks confirm with the guidelines presented in BCBS 238 along with requirements of individual financial regulators in different geos like FED, PRA, FINRA, MAS, HKMA etc.

Service offerings under Liquidity risk management

  • Scenario Analysis
  • Sensitivity Analysis
  • Bank Run off model development
  • Exposure management
  • LCR & NSFR calculation & reporting
  • Risk Dashboard development
  • Review of asset quality
  • Report automation
  • Data Aggregation
  • Real time view of asset holding , exposure and liability
  • Liquidity framework implementation and review

Downloads

Cost of ownership on Data Management

Cost of ownership on Data Management
For further information please write to connect@techmahindra.com

For further information please write to connect@techmahindra.com