For new fund managers, understanding the full range of compliance obligations, especially across jurisdictions, can be burdensome. For those operating from jurisdictions with Model 2 intergovernmental agreements (“IGAs”), the regulatory framework can be further complicated by obligations they have under the U.S. Foreign Account Tax Compliance Act regime (“U.S. FATCA”).
Under Model 2 IGAs, Foreign Financial Institutions (“FFIs”), including investment entities, are required to enter into an FFI Agreement directly with the Internal Revenue Services (“IRS”), which is effected through the IRS FATCA registration portal. FFIs must complete registration, identify a Responsible Officer, comply with annual reporting of U.S. Person account holders, and attend to periodic recertifications. The annual reporting cycle can quickly become a bottleneck without clear processes and reliable support. Because Model 2 FFIs are required to report directly to the IRS, accuracy, consistency, and timely submissions are essential.
At Praestans Global Advisors, we focus on one thing: making U.S. FATCA reporting straightforward, repeatable, and risk-aware for investment entities. We help teams streamline their data collection, prepare compliant files, and complete their annual submissions with confidence.
