Crossbridge Insight Regulation Series: FATCA

Crossbridge Insight Regulation Series: FATCA Challenges and Impacts Vol 2

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The industry estimates the cost of compliance will be between $20 -$50 USD per investor, for a medium sized bank this will equate to $150-$200 USD million. Banks will have to apportion a large chunk of their budgets to be FATCA compliant and given the current cost constrained environment there are a number of institutions that will opt out and cease from dealing with US clients and assets.

The key challenge facing the financial institutions is how to best allocate limited resources for FATCA implementation given the rule making is ongoing, timelines are tight and the definitions are ambiguous and sometimes contradictory.

 
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