In order to continue to grow and strengthen its presence in the Chilean and international financial market, Depósito Central de Valores (DCV) “is working intensely to be part of the FATCA Compliance entities”, assured the Supervisor of Operational Risk and head of the DCV-FATCA project,Clementina Torres.

“This American law was issued in 2010, but FACTA will become effective on January 1, 2014”, said Torres, adding, “if a company wishes to comply with this new regulation it has until October 23 to be a pioneer and appear in the list of companies that comprise FATCA Compliance”.

It is worth mentioning that being part of FATCA Compliance is not a requirement, but it does generate competitive benefits in respect of the other entities that are not on the list, as they may be impacted by a 30% withholding”, said the Supervisor of Operational Risk.

Clementina Torres said, “within the securities market, DCV plays an essential role as we are a market infrastructure and by not complying with this regulation we could lose competitiveness, especially for our international custody service, so transforming and complying to this law is a natural decision”.

Fatca

Because this law seeks to promote or encourage the work and contracting in the United States, what happens is a new chapter in the internal code of the Internal Revenue Service in that country, which includes everything related to cash flows that American citizens obtain worldwide.

Given the above, regardless of their place of residence, American citizens shall pay taxes; therefore, is a requirement of being a citizen to pay taxes wherever they are.

Preparation of DCV

“Since the term for the implementation of this regulation is a critical factor, the first thing we did was seek aid from a consulting firm with which we have been making an assessment and diagnosis as to how this regulation impacts us. The prognosis includes the identification of the services affected; local and international custody, and principally everything related to participants support”, said Clementina.

On the other hand, “upon completion of the diagnosis and assessment process, foreseen for late June, the implementation process will commence to then reach our goal which is to be within the first Chilean companies listed as FATCA Compliance on 23 October”, concluded the Supervisor of Operational Risk and head of the DCV-FATCA project, Clementina Torres.

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