New eLearning – FATCA, CASS & Transaction Reporting

Unicorn Training ComplianceServe


It was estimated that the US Treasury lost $8bn of income tax revenue annually, due to US citizens hiding funds in offshore accounts. During President Obama’s time in office, he enacted The Foreign Account Tax Compliance Act 2010, more commonly known as FATCA. FATCA was intended to recoup those funds.

To the US, the UK is offshore. Failure to comply with the obligations can result in penalties and fines.

Some firms choose not to hold accounts for US citizens. However, if your firm is one of those that do and you are involved in the management or day-to-day running of these accounts, you will need to:

  • understand the basic principles of FATCA - which accounts are reportable
  • recognise situations where failure to comply with FATCA may arise
  • know which penalties may be applied for lack of compliance
  • be familiar with the various terms used within FATCA and be able to explain their relevance.

The new pathway on FATCA provides learners with all of the above.

The Basics of CASS (Client Assets Sourcebook)

In the last few years, the FCA has issued over £180 million in fines to firms over CASS issues and breaches.

Increased consumer detriment can arise when authorised firms default or leave the market. Poor records and ineffective segregation procedures for client monies create a slower, costlier and more uncertain outcome for the customer, along with associated reputational damage to the FCA and UK markets, as we saw with the most recent financial crisis.

Lack of knowledge and awareness are the biggest causes of CASS breaches – particularly during periods of change such as mergers and acquisitions.

The CASS affects all firms that have permission to hold and control client money as well as firms that are authorised to carry out activities such as safeguarding, arranging and administering assets. Adhering to CASS requirements is fundamental to ensuring client money and assets are dealt with correctly, protecting the customer, the firm and the market.

If employees are new to the role of control of client monies, or need a refresher to bring them up to date with current CASS regulatory requirements and the reasons why they need to be adhered to, this module is for them.

Transaction Reporting

Understanding transaction reporting and the role it plays is vital in protecting the market, firms and clients from financial market abuse, insider trading and market manipulation. It supports the statutory objectives of maintaining confidence in financial markets and reducing financial crime.

Firms can expect enforcement action for submitting transaction reports incorrectly that may conceal potential instances of market abuse.

Common areas of non-compliance with the regulation are due to:

  • not understanding the importance of submitting transaction reports in a manner that correctly shows the transaction
  • not understanding why using transaction reports is essential as part of monitoring and surveillance of financial crime
  • not having processes for conducting internal and external reconciliations that are clear, concise and reviewed on a regular basis.

Transaction reporting is a priority for the FCA and is a key tool in identifying potential market abuse and market surveillance to ensure the integrity of the UK financial services market. If an employee’s role involves, or is party to, submitting transaction reports, make sure they understand the part they play by having them complete this module.


Simon Mercer

Simon Mercer

Head of Business Development

Since arriving in the eLearning industry in 2002, Simon has helped to conceive, develop and deliver…

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