About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Ready for FATCA? One in Four Financial Institutions Not Even Aware of Impending US Tax Legislation

Subscribe to our newsletter

RBC Dexia Investor Services said today that 26 per cent of financial institutions worldwide have little or no awareness of the Foreign Account Tax Compliance Act (FATCA)—despite the fact that the Act was passed in 2010, according to a survey conducted by the company.

FATCA is the cornerstone of US tax legislation relating to foreign accounts held by US citizens. The intent of FATCA is to capture all potential tax revenue that is payable on the worldwide income of US persons.

Jean-Michel Loehr, Chief, Industry and Government Relations, RBC Dexia Investor Services noted: “The message from this report is with all the FATCA rules and regulations yet to be finalized – including any granted exemptions – financial institutions can only take a measured approach to preparation. The good news is that awareness is gaining traction; the bad news is that the market needs much more clarification before any program can truly be finalized.”

The survey noted that European financial institutions appear to be paying much closer attention with 86% of respondents confirming strong levels of FATCA awareness.  Larger organizations also see this as an area of focus as 81 per cent of respondents with over USD 1 billion in assets rated some or significant awareness.

Despite a lack of clarity about the full scope and impact of FATCA, survey participants who are aware of FATCA are getting ready for its eventual implementation. A majority, 54 per cent of respondents, classed themselves as moderately to very prepared, while 36 per cent considered themselves moderately prepared. Meanwhile, 21 per cent of overall respondents admitted they were not prepared at all.

Early projections from survey respondents reveal that 85 per cent put the cost of implementing FATCA at USD 1 million or less, with the majority (54 per cent) expecting a bargain expenditure of less than USD 100 thousand. Only 5 per cent of respondents are anticipating expenses over USD 5 million. There were no significant response variations based on region or size of organization.

RBC Dexia’s FATCA program was established in 2010 and is led by a cross functional program steering committee. RBC Dexia will continue to track FATCA readiness globally, assess the guidelines as they become available from the United States IRS and Treasury, and develop a series of resources to help clients manage for its implementation.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Mastering Data Lineage for Risk, Compliance, and AI Governance

Financial institutions are under increasing pressure to ensure data transparency, regulatory compliance, and AI governance. Yet many struggle with fragmented data landscapes, poor lineage tracking and compliance gaps. This webinar will explore how enterprise-grade data lineage can help capital markets participants ensure regulatory compliance with obligations such as BCBS 239, CCAR, IFRS 9, SEC requirements...

BLOG

AI in Focus as Experts Meet in UK Capital for Data Management Summit London

Artificial intelligence has dominated the data management conversation in the past couple of years as organisations have recognised the technology’s potential to streamline operations, improve decision making and draw value from the data they use. A-Team Group has responded to the growing demand for intelligence on AI and has given the technology a keen focus...

EVENT

ESG Data & Tech Briefing London

The ESG Data & Tech Briefing will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

AI in Capital Markets: Practical Insight for a Transforming Industry – Free Handbook

AI is no longer on the horizon – it’s embedded in the infrastructure of modern capital markets. But separating real impact from inflated promises requires a grounded, practical understanding. The AI in Capital Markets Handbook 2025 provides exactly that. Designed for data-driven professionals across the trade life-cycle, compliance, infrastructure, and strategy, this handbook goes beyond...