Over the last few years we have delivered many courses to financial institutions all over the world on the practical impacts of QI and FATCA. These topics have usually been delivered in series within the course i.e. QI first and then FATCA. With the increasing overlap of these regulations, despite their very different purposes, it has become clear to us that we should restructure these courses so that they focus on the common process elements first and then relate these to the regulatory purpose. This means that the delegates get a very much more compliance and operationally oriented delivery of material.

At the same time, the content of these courses has evolved immensely to take account of additions, deletions and amendments, as well as new frameworks.

So, I’m very pleased to publish the new look courses for 2016. The agenda below can be delivered in one or two days, usually ‘in house’. This agenda can be used for our ‘What it Means to be a QI’ course as well as the general ‘US Withholding Tax – Advanced’ course.

 

1. Introduction

 

2. The Strategic ‘Helicopter’ View

 

a. Context

b. Purpose

c. Overlap and Trends

 

3. Principles and Impacts: The Tactical ‘On the Ground’ View

 

a. QI

i. KYC Approved jurisdictions for Chapter 3

ii. KYC Approvals process

b. FATCA

i. IGAs (M1A, M1B, M2) with variants for DTT and TIEA

ii. Signed v ‘In Substance’ v ‘Announced’

iii. Legal Basis – Domestic Statutes

iv. Partner Letters

v. Annexes to IGAs

vi. Competent Authority Agreements and Annexes

vii. Domestic Guidance

c. Engagement with the IRS

i. Chapter 3 QI Applications & Renewals

1. Decisions, options and impacts in QI applications

2. Adopting primary withholding

3. Adopting Primary Back-up withholding

4. QualifiedSecurities Lending status

ii. Implications of staying an NQI

1. EIN vs QIEIN

2. Disclosure

iii. Chapter 4 FFI Registration and certification

1. GIINs

2. Registered and Certified Deemed Compliance

d. Due Diligence

i. Types of Client and Terminology

1. Chapter 3: Intermediaries, Individuals, Corporations

2. Chapter 4: FFIs, NFFEs, Individuals

ii. KYC and AML

1. Levels ofreliance

2. Liability

iii. Forms W-8

1. Pros and Cons of the W-8 series

2. Validation rules for Chapter 3 and Chapter 4

3. Validity Periods, Cures and Electronic Forms

iv. Man Walks into a Bar…

1. Reason to Know vs Actual Knowledge

2. Presumption Rules

v. Deemed Compliance – Registered and Certified

e. Withholding

i. Account Structures and Withholding Methodologies

1. Withholding Rate Pools vs Withholding Rate Pool Statements

2. Withholding Rates

3. FATCA Penalties

ii. Typical Structural Errors and Market Problems

1. Erroneous FATCA Withholding by USWAs

2. Systemic issues of USWAs leading to FATCA withholding

3. Classificationand Reclassifications of income

4. Disagreements oninterpretation

5. ‘Regulation ’v‘ commercial policy’

iii. Refunds

1. Chapter 3 refund models

2. Chapter 4 refund models

f. Reporting

i. Chapter 3 Reporting for QIs and NQIs

1. NRA Reporting (1042 and 1042-S)

2. The Reporting Cycle

a. Extensions

b. Amended Reporting

3. FIRE System

a. TCC Applications

b. File Formats. Publication 1187

c. Testing Window

d. Submission Process

4. US Persons Reporting (1099-X and 945)

a. Reporting Cycle

b. Election to report in FATCA

ii. Chapter 4 Reporting for M1 and M2 Reporting FFIs

iii. Chapter 4 Reporting for non-IGA FFIs and IGA governments

1. IDES System

2. ICMM System

g. Control & Oversight

i. Responsible Officers

ii. Compliance Programs

iii. Periodic Reviews

iv. Certifications, Qualified Certifications and Certifications of Completion of Due Diligence

v. Notices of Material Failure

 

4. Running YourBusiness

 

a. Senior Management issues

i. Awareness

ii. Understanding

iii. Budgeting

b. Relationship management issues

i. With financial counterparties

ii. With clients

iii. With staff

c. Systems issues

i. Recording data

 

5. Solutions

 

a. Task or Product – the case for accepting US clients

b. Automated document management systems

i. ISD and W-8 document validation services

ii. TIN Matching Services

c. Reporting Solutions

i. DIY

ii. Outsource

d. Compliance support services

i. GATCA Resource Library

ii. Interim Periodic Reviews

6. Future Proofing

a. Gap Analysis of QI, FATCA and AEoI & CRS

 

If you’re interested please get in touch.

We are also preparing a separate course on AEoI/CRS and, eventually some of that content will find its way into this course. Don’t forget that if you want to have a curated library of compliance material try www.gatca.info.