Diasoft's FLEXTERA ensured compliance of OTP Bank with the FATCA requirements

Monday, April 18, 2016

Diasoft, a global provider of cutting-edge financial software solutions, announced successful implementation of its FLEXTERA FATCA solution.

On 31 March 2016, Russian banks completed submission of reports on accounts and income of U.S. tax residents to the U.S. Internal Revenue Service (IRS). The reports were prepared in compliance with the new Russian regulatory requirements to the interaction of financial institutions with authorized bodies and to the formats of electronic data exchange with the Federal Tax Service (Instruction No.1267 issued 26.11.2015).

Diasoft was the first software developer in Russia that supported these formats by releasing an auxiliary application to its software product FLEXTERA FATCA – the solution that ensures end-to-end support of the report generation process and controls report submission deadlines. This enhancement allowed Diasoft customers to easily comply with the new regulatory requirements.

One of the examples of implementation of this solution is a recent project in OTP Bank. Thanks to the efficient collaboration of the project teams, the project was completed within a short period of 1.5 months, which allowed OTP Bank to timely file reports on foreign tax residents to the IRS and receive notifications confirming the receipt of these reports.

Diasoft plans to further enhance its FLEXTERA FATCA with a gateway to the Federal Tax Service, which will allow automatically downloading reports to the website of the tax authority. Russia's commitment to support the CRS (Common Reporting Standard), European analog of the FATCA, will increase the workload associated with identification of foreign tax residents and their accounts and with submission of respective reports. Diasoft has already engaged in the R&D activities to timely provide the market with a reliable solution meeting the new regulatory requirements.

About OTP Bank

OTP Bank is a universal credit institution offering a wide range of banking services and products for corporate and individual customers. The bank is a member of the international OTP Group, one of the leaders in the financial services market of Central and Eastern Europe. It is ranked among the 50 largest banks in Russia and is a leader in a number of business sectors in the home market.

About Diasoft

Since 1991 Diasoft has been providing cutting-edge financial software solutions supporting all aspects of retail, wholesale and universal banking, financial market services, and insurance business. The company’s main offering to the financial market is FLEXTERA — a SOA-based universal system comprising a comprehensive suite of modules for front-to-back automation of modern financial services.

The FLEXTERA’s functional scope covers the following areas of financial business:

·       Back Office and Core Banking operations including daily banking transactions processing; product and service management; BI, accounting and reporting;

·       Multichannel Front Office operations and client management;

·       Middle Office risk management and decision making.

The modern technological principles lying at the core of all FLEXTERA solutions in combination with their broadest functionality provide our customers with limitless opportunities for their business development in accord with market trends and clients’ requirements.