Financial services provider Markit announced that it has agreed to acquire Compliance Technologies International (CTI), a tax compliance and reporting service provider.
Software from CTI automates the certification of tax domicile, validation of withholding tax status and calculation of withholding tax to help firms streamline compliance with anti-money laundering (AML) and know-your-customer (KYC) regulation, according to a press statement.
Dodd-Frank, Emir, Fatca and Mifid, among other regulations, create stringent requirements in the financial services industry for the collection and management of customer data.CTIs expertise in tax due diligence, withholding and reporting complements the customer identity management and regulatory reporting services offered by Markit through its Counterparty Manager platform and the recently launched Markit Genpact KYC Services solution.
Michele Trogni, managing director and global head of managed services at Markit, said: There is growing harmonisation among tax regimes worldwide which creates exciting opportunities for service providers to standardise and digitise tax processes. CTIs unique technology and tax expertise will enhance Markits KYC offerings and further enable us to help our customers adapt to changing regulation.
Cyrus Daftary, cofounder and chief executive officer at CTI, said: Markit’s global reach will be invaluable as we grow the CTI business and expand our product platform. We will continue to offer our customers best-in-class tax compliance tools and will continue to innovate to address evolving regulatory requirements.
The transaction is subject to regulatory approval and is expected to close in July.