Case Study - FATCA
The Foreign Account Tax Compliance Act (FATCA) is a 2010 United States federal law to enforce the requirement for United States persons including those living outside the U.S. to file yearly reports on their non-U.S. financial accounts to the U.S Inland Revenue Service via domestic tax authorities.
FATCA regulations require Foreign Financial Institutions (FFIs) that are unable to definitively confirm the FATCA status of all new and pre-existing account holders to obtain a self-certification from the account holder to clarify the FATCA status which can be obtained from a company or industry specific form, designed for this purpose.
The purpose of FATCA is to identify individual account holders that are U.S. tax residents or non-individual account holders that are beneficially owned and controlled by U.S. tax residents. Many financial institutions have millions of accounts and even if a small proportion of these meet this criteria, could mean thousands of customers may require a self-certification form to be completed.
This example form from the FSC/FPA, the default industry standard in Australia (although any form can be deployed in the platform) and can be completed by the individual by hand, or pre-populated via a data extract in CSV as shown further down below.
The extract file shows one single individual, however FormsBox can process thousands of entries per file (would be good to show 10-20 file), typically extracted from a Customer Relationship Management (CRM) system or Data Warehouse. The CSV format can be downloaded for each form via the FormsBox Library and automatically provides the columns that maps to each field in the form, allowing bulk uploads of up to 100,000 records at a time to be uploaded, which will automatically pre-populate the form with the required information.
The company FATCA administrator will sign into FormsBox which takes them to their Home folder, listing all forms available.
The administrator selects the Administration form and navigate to the Batch processing tab.
By clicking on Submit New, the administrator can browse and select the generated CSV file to be used for form pre-population.
After clicking OK, the CSV file is uploaded and placed in the queue for offline processing.
Once processed, the Batch view will show the date and time processed including the number of forms distributed.
The targeted individuals (column 2 in the CSV file) will receive an email notification and the populated form within their Home folder in FormsBox. Users without a FormsBox account will receive an invitation to join FormsBox (free). Once signed-up, the form will be available in their Home folder.
The administrator who submitted the batch will in turn receive an email notification once the batch has completed processing.
Once the individual signs in, the pre-populated form will be shown in their Home folder with the New icon. Clicking on the form will allow them to complete, sign and return the form while also being able to attach additional documentation.
Here we see the user viewing the form, with the fields pre-populated as per the CSV file.
Scrolling to the bottom of the form, the user can use the Freeform tool to sign the form using their mouse or other digital pointing device, or stamp a graphical copy of their signature.
Proof of identification can be uploaded and attached to the form, such as a passport copy.
Multiple images, voice memos and PDF documents can be attached. Once complete, the user can click on the Return button to return the completed form to the sender.
Users can select to include specific attachments when returning the form.
The administrator will receive a notification that the form has been completed and returned for review.
Completed, returned forms are listed in the administrator Review folder. Click on the folder to navigate to the forms available for review.
The completed form is listed in the Review folder, and the administrator can click on the form to perform a review.
Here the administrator can view, annotate and sight any attachments, such as the passport copy.
Identification can be verified as per the attached copy.
Administrators can select to Reject a form, with comment, and return it to the user for correction.
Alternatively, administrators can approve the document review, download, print and share the document internally as required, or in specific situations decide to escalate the form for review by another user, for example their manager.