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New legislation highlights need for governance

Rachel Wheeler Archive
A new U.S. law has could have banks around the world scrambling to make sure information is clearly accessible and data quality is high. According to Bizcommunity, the Foreign Account Tax Compliance Act is set to come into effect in January 2013, leaving firms a few months to ready their governance units.

FACTA is designed to make sure U.S. companies and residents with holdings outside the company do not use the overseas accounts to evade American taxes. According to Bizcommunity, compliance with the new law will require high-quality data. The exact requirements have not yet been published but, the source stated, that does not mean companies should wait before improving data quality tools.

Bizcommunity noted that banks located anywhere but on U.S. soil will have to act to tag their U.S. clients for regulators. Inaccuracies in these notations, according to the source, could result in stiff financial penalties.

Governance efforts as a whole have become more advanced of late, with new types of information affected. According to TechTarget, governance and data management efforts have expanded to include large, unstructured data. Though these processes are still underdeveloped, they could represent the future of data cleansing.