GlobeTax Expands ISO 20022-Driven MIDAS® Offering

Relief at source is considered the gold standard of global withholding tax relief, as investors receive their full dividend entitlements at the first available opportunity.

GlobeTax’s MIDAS® service provides relief at source to investor clients of financial institutions, magically minimizing the risk and time involved in securing tax entitlements. With the offering, financial institution clients simply send us daily files communicating investors’ holdings. The alchemists at GlobeTax identify opportunities to receive tax entitlements on upcoming dividend events and—prest-o-change-o!—deliver instructions for electing at DTCC. 

In September 2019, we released a key upgrade to this offering: automated DTCC CA Web elections via ISO 20022 Messaging. Developed during a year-long partnership with DTCC, the innovation reduces the burden on financial institutions, who previously needed to manually input instructions into the DTCC portal. With ISO 20022, the election instructions are automatically transmitted to DTCC, reducing human error and freeing up valuable operational resources for clients.

Despite the positive feedback from this feature, we recognized that we had not tapped the full potential of ISO 20022. Thus, in January 2020, we launched a process to automate the segregation of beneficial owners based on entity type or country of residence, a cumbersome and manual effort that was not addressed in our original release. Once again capitalizing upon our close relationship with DTCC, we leveraged ISO 20022 to automatically funnel Beneficial Owner Breakdowns into CA Web. This innovation again reduces the burden on financial institutions, who no longer need to expend time (and incur risk!) manually inputting detailed beneficial owner information into the portal.

Because a good magician never reveals his or her tricks, GlobeTax offers our outsourced tax recovery service to any DTCC Participant contending with disappearing budgets and other risks, such as the novel coronavirus. And with new features and innovations incorporated into ISO 20022 Messaging, GlobeTax’s marvelous MIDAS® team ensures that the process is almost completely straight-through—true relief at sourcery!