Markit, a provider of financial information services, wants to acquire Compliance Technologies International (CTI), a tax compliance and reporting services vendor, officials say.
The vendors did not disclose the amount of the transaction, which is subject to regulatory approval and is expected to close in July, officials add.
A growing harmonization among tax regimes worldwide is leading to “exciting opportunities for service providers to standardize and digitize tax processes,” says Michele Trogni, managing director and global head of managed services at Markit, in a prepared statement. “CTI’s unique technology and tax expertise will enhance Markit’s KYC offerings and further enable us to help our customers adapt to changing regulation.”
CTI’s software systems automate 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.
The regulatory reporting requirements of Dodd-Frank, EMIR, FATCA and Mifid, are forcing financial services firms to collect and manage customer data, officials say. CTI’s tax due diligence, withholding and reporting offerings will complement 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, officials say.
CTI will continue to offer tax compliance tools and to address evolving regulatory requirements, says Cyrus Daftary, cofounder and CEO at CTI.
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