Deutsche WertpapierService Bank AG (dwpbank) and COR&FJA AG, the software and consulting firm, have entered into a co-operative venture in order to offer banks and insurance companies an efficient range of solutions for implementation of the US American Foreign Account Tax Compliance Act (FATCA).
By doing so, they have combined the range of services offered by the dwpbank with its extensive experience in the field of US American tax legislation with the software products of COR&FJA to produce an all-inclusive service spectrum that covers the entire valueadded chain relating to FATCA. This service spectrum is as yet unparalleled in Germany. Users of the new FATCA solution include each partners' existing customers from the banking and insurance sectors, as well as new customers.
Becoming fully effective as of 1 January 2013, FATCA, the Foreign Account Tax Compliance Act adds a new chapter to the US American Internal Revenue Code that will affect banks, investment companies, insurance companies and building and loan associations all over the world. FATCA will create the need for a comprehensive documentation and reporting system for all customers and for all income and capital gains originating in the USA.
COR&FJA's contribution to the joint range of services will be a modular software product that covers the complete FATCA settlement chain. The dwpbank will be adding operational activities relating to back office services, reporting and communication with the US authorities.
The dwpbank has acquired more than ten years of experience in business transactions involving US withholding tax for around 1,600 affiliated financial institutions in Germany. This corresponds to a third of all institutions worldwide and makes the dwpbank the largest point of contact for the US tax authorities. These many years of expertise provide the foundation on which FATCA requirements relating to back office and reporting activities have been bundled and are now being made available to the relevant insurance companies, as well as banks.
In its capacity as the leading IT and consulting firm for the financial sector, COR&FJA has been developing sophisticated IT system solutions and successfully advising customers on the implementation of custom-fit IT concepts in upwards of 30 countries for more than three decades now. Developed with state-of-the-art technology, the FATCA solution is based on the vast experience in the implementation of regulatory requirements acquired by COR&FJA.
Karl-Martin im Brahm, member of the dwpbank Board of Management: 'Having joined forces with our partner, we are delighted to be able to offer our existing customers and also the German insurance industry, for instance, a comprehensive range of services. The institutions will be able to benefit from scale economies and can also be sure of receiving the best possible implementation of FATCA.'
Ulrich Wörner, Chairman of the Management Board of COR&FJA, adds: 'Our strength has always been lodged in further improving leading ranges of products by means of service and consulting. We are now doing this in collaboration with Germany's foremost transaction bank. In doing so, we are addressing banks and insurance companies to the same extent and have created an as yet unique product and service spectrum.'