Fusion Systems, a Channel Islands’ IT company which develops Fintech software solutions for financial institutions around the world, has partnered with Singapore-based Centenal Technology Group, to provide a new technical solution to address both compliance with the Common Reporting Standard (CRS) and to help financial institutions prepare for the upcoming CRS audit assessment process.
In 2020, the finance sector will be subject to various changes within the regulatory regime. Jurisdictions including Jersey and Guernsey are due to perform CRS audit inspections of financial institutions, a fundamental requirement of having adopted the Organisation for Economic Co- operation and Development (OECD) CRS regime. Jurisdictions will also implement the European Union’s framework for Mandatory Disclosure Rules on CRS Avoidance Arrangements. By combining their solutions, Fusion Systems and Centenal will enable financial institutions to meet these requirements comprehensively and efficiently.
Centenal’s CRS Expert solution applies technology to test CRS reporting compliance objectively with artificial intelligence (AI) algorithms, where previously, an audit approach would be wholly reliant on the knowledge of a person performing an audit. This is complimented by staff education and knowledge assessment functions. By combining Fusion Systems’ Flyingboat Tax Data Exchange reporting technology with Centenal’s CRS Expert software, they can offer businesses in the finance sector a complete reporting and pre-audit assessment tool.
Founder of Centenal Technology, Zac Lucas, said: “The CRS Audit Assessment provides a call to action for financial institutions to make sure that they have robust and fit for purpose processes and staff knowledge for managing and continuously monitoring the CRS status of accounts, account holders and entity structures together with managing and mitigating the risk associated with it. With Mandatory Disclosure requirements having a proposed 30 day reporting cycle, monitoring now more than ever needs to be a real time technological process.”
Fusion Systems Managing Director, Alan Rowe, said: “The challenges of the ever-changing regulatory regime in the finance sector can only be solved cost effectively and practically by the application of technology solutions. The best of those include AI approaches to solve the increasingly complex regulatory challenges.”
“The reporting format of CRS is anything but common and it has been a particular challenge for international financial institutions which need to report to multiple jurisdictions around the world, something that Flyingboat Tax Data Exchange addresses elegantly. It’s important that businesses have the right solutions in place to remain compliant and provide accurate reporting, the Audit Assessment process can be expected to review whether financial institutions maintain robust and accurate data management and reporting practices.”