Capgemini, Pegasystems, and law firm DLA Piper have announced a joint compliance offering for financial institutions that are subject to the U.S. Foreign Account Tax Compliance Act.

Under FATCA, which takes effect on Jan. 1, 2013, foreign financial institutions will be required to determine if an account is owned by a U.S. person, report data on the account to the Internal Revenue Service and possibly withhold or pay a 30 percent tax on “withholdable payments.” As a result, many firms are re-evaluating their existing know-your-customer program, given the  anticipated high cost of compliance, said Reetu Khosla, director of risk, fraud and compliance at Pegasystems. "By partnering with Capgemini and DLA Piper, clients will get a complete software and services offering to ensure timely and specialized FATCA compliance.”

Through this joint offering, Capgemini Financial Services and Pegasystems will work with financial institutions to coordinate their systems' interface with Pegasystems technology and install customized legal advice developed by DLA Piper in the software. Capgemini and DLA Piper will review financial institution data, advise clients on enhanced FATCA due diligence, reporting and withholding requirements and ensure compliance with FATCA regulations.

Pegasystems, a provider of Dynamic Case Management and Know Your Customer software solutions, offers a unified, business-rules driven case management solution to facilitate the automation of FATCA compliance.  It enables global institutions to manage all aspects of FATCA requirements within automated on-boarding processes, as well as look-back requirements. The Pega solution provides a complete view of the customer to ensure classification consistency across lines of business, accounts and countries.