Regulatory Reporting – A More Efficient Way

Dec 13, 2021
2 min read

Updated: Jan 8

Nexus AML rapidly mobilised a team of experts and utilised expertise driven reporting technology to help a growing UK bank to meet a fast-approaching FATCA/CRS regulatory reporting deadline.

Nexus AML previously worked with the client to design governance standards for FATCA/CRS for the previous reporting year. The client re-engaged with Nexus AML when they were looking to outsource their FATCA/CRS reporting to a partner they could trust.

The client approached Nexus AML six weeks prior to the reporting deadline, requiring a team to manage the return process and take the relevant steps to meet the given date. They sought Nexus AML’s help to produce and submit the return to HMRC, develop a reporting pack that met their governance standards and ensure appropriate data security measures when handling and processing their data.

Challenge

The regulatory reporting deadline was fast approaching
There was no formalised plan around ownership and the return process
The in-house teams needed support to achieve accurate reporting to the relevant regulatory and data quality standards expected by HMRC
The client did not have the necessary reporting technology to enable them to review and remediate the reporting data set efficiently and accurately within the

Solution

Secure transfer of data to Nexus AML

The client’s reportable data was securely transferred to Nexus AML’s environment where appropriate access controls allowed the tax analysts to review and load the data into the report generation software.

Efficient identification of errors

Sophisticated validation rules determined by Nexus AML’s regulatory experts, ensured the in-house built technology quickly identified areas requiring data repair. As part of this process, Nexus AML’s experts also identified some misinterpretation of indicia rules by the client and triggered a secondary review of the reportable population to ensure it was 100% accurate. Nexus AML’s highly refined rule set ensured the final report was technically sound and would pass all HMRC schema validation.

Assessing for inherent tax risks

A tax risk assessment was conducted by Nexus AML including an analysis of missing TINs, jurisdictional analysis and where customers are reportable to.

Meeting the required standards

Nexus AML designed a reporting pack that met the client’s governance standards, enabling senior

executives to sign off the return for submission to HMRC.

Data security

Nexus AML agreed data retention and deletion processes with the client ensuring these were satisfactorily dealt with on completion of the project.

Outcome

Following submission, the client received no inquiries from HMRC.

With Nexus AML’s help, the client met the regulatory reporting deadline with two weeks to spare, giving senior management time to ensure a risk focused and robust sign off process was followed prior to submission