Background

Reporting Standard

Classification		FATCA	MCAA
Accounts subject to report	Individual	Existing account exceeding $ 50K (Insurance and pensions over $ 250K) New savings and insurance accounts exceeding $50K (No limit for other accounts)	All accounts
	Corporate	Existing accounts exceeding $ 250K at the end of June, 2014 and ones exceeding $ 1 million at the end of the following year All new accounts	Existing accounts exceeding $ 250K at the end of December 15 and at the end of the following year ㆍAll new accounts All new accounts
Account holders to be reported		US citizen US Residents under the US tax law Passive non-financial organizations where Americans are the substantial rulers	Foreign residents under foreign taxation law Passive non-financial organizations where reporting subjects are the substantial rulers
Report of closed accounts		Balance before closing the account	Fact that the account is closed
Dormant accounts		Subject to report	Except ones with less than $ 1,000 on balance
Non-participating financial institutions		Reporting paid amount	No reporting
Passive non-financial institutions		US organizations are reported only as a group	Passive non-financial organizations are reported as to the organizations and substantial rulers

FATCA / MCAA Taxidancer Functions

• Management of Laws and Regulations

  • Simulation function reflecting various conditions
  • Registration of the information and flow for work
  • Management of work changes and batch logs
  • Extraction task logics

• Customer Classifications and Checks for Customers in the Participating Countries

  • Individual/Corporate customers
  • Management of excluded customers
  • Accounts with large or small balances
  • Management of namesakes

• Management of Requesting the Personal Information Agreement and of Due Diligence

  • Registration and management of the personal information agreement and identification document (Check for agreements upon providing personal information)
  • Identification and documentation about given information, not available information, and foreigner identification
  • Management of varied transaction logs and due diligence information

• Annual Report from Taxation Authorities in Participating Countries

  • Management of reporting information and generating report files
  • Report registration process (for possible differences on reporting manners from country to country)

Features & Strengths

• Satisfying Requirements for Overseas Agreements

  • Satisfying MCAA requirements such as customer due diligence, analyses, monitoring, reports, and etc.
  • Efficient user interface design for end users

• Easy Connection

  • Easy connection to other systems by Datamation’s standard data design
  • Data architecture enabling easy extraction and search on large data

• Stability and Expandability

  • Stability and expandability of the integrated system design in consideration of future FATCA and MCAA regulation changes
  • Expandable design reflecting of changes from additional MCAA participating countries

• Effective DB Design

  • Shortened implementation periodnance through FATCA and MCAA implementation experiences and solution frames of Datamation

System Configuration

The FATCA/MCAA system collects data from the core/non-core banking systems and constructs analysis systems. It consists of areas for the due diligence and check for existing and new customers through the on-boarding process, management of country/customer products, monitoring, reporting to home and foreign taxation authorities such as NTS and IRS.

Effects

• Satisfying legal and regulatory requirements from competent authorities

• Boosting the international creditworthiness through the system implementation complying with the international standards

• Raising efficiency through work process designs for the least influences of the system implementation on business