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Regulatory Compliance
R24 AMR
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Regulatory Compliance
TABLE OF CONTENTS
Regulatory Compliance 3
CRS Client Identification ⥤ Including Balances of Ex-joint Holders in the CRS Aggregation Process 3
FATCA Client Identification ⥤ Including Balances of Ex-joint Holders in the FATCA Aggregation Process 3
IFRS9 Financial Instruments ⥤ Bilateral Corporate Facility and Drawings 3
PSD2 Account Information ⥤ Retrieving the List of Beneficiaries based on Consent 5
Customer Data Protection ⥤ Supporting Multi-Entity Retention Period for Erasing Customer Data 5
PSD2 Account Information ⥤ Returning a List of Standing Orders Linked to the Addressed Account 5
Identity Comparison ⥤ Name Matching 6
FATCA Client Identification ⥤ FATCA Balance Aggregation for a Joint Portfolio 6
CRS Client Identification ⥤ CRS Balance Aggregation for a Joint Portfolio 6
IFRS9 Financial Instruments ⥤ Corporate Club Facilities and Drawings 7
Payment Regulations ⥤ Confirmation of Payee (CoP) 7
FATCA Reporting ⥤ Generating Country Variation Report 8
IFRS9 Accounting ⥤ Impairment of Contingent Liabilities under IFRS9 8
Financial Risk Management ⥤ Liquidity Ratios and ALM (FRM04) 8
IMPA36 ⥤ Impairment of Assets under IAS36 9
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Regulatory Compliance
CRS Client Identification ⥤ Including Balances of Ex-joint Holders in the CRS Aggregation Process
Available from: 202307
The joint account in which the customer had been a joint holder was not considered for aggregation of account balances. As a
result, the joint account was not reported in the CRS year-end report for the current CRS reporting period, which was incorrect.
The functionality is enhanced to track any inclusion or exclusion from a joint relationship, either at the customer level or account
level. The tracked information is then referred during the balance aggregation and CRS report generation processes. The CRS
balance aggregation logic is enhanced to consider the accounts of the ex-joint holders and report the accounts based on the
CRS.CCSI.CUSTOMER.STATUS live file.
The topics related to this feature are given below:
❖ Incl Ex Joint Holder
❖ Balance Aggregation for Ex-joint Ownership
FATCA Client Identification ⥤ Including Balances of Ex-joint Holders in the FATCA Aggregation Process
Available from: 202307
The joint account in which the customer had been a joint holder was not considered for aggregation of account balances. As a
result, the joint account was not reported in the FATCA year-end report for the current FATCA reporting period, which was
incorrect.
The functionality is enhanced to track any inclusion or exclusion from a joint relationship, either at the customer level or account
level. The tracked information is then referred during the balance aggregation and FATCA report generation processes. The
FATCA balance aggregation logic is enhanced to consider the accounts of the ex-joint holders and report the accounts based on
the FATCA.FCSI.AMENDMENTS live file.
The topics related to this feature are given below:
❖ Incl Ex Joint Holder
❖ Balance Aggregation for Ex-joint Holders
IFRS9 Financial Instruments ⥤ Bilateral Corporate Facility and Drawings
Available from: 202308
According to the IFRS9 financial standards, it is now possible to classify and measure bilateral corporate facilities and their
drawings, as well as apply impairment assessments. The IFRS9 financial standards allow the following actions to be performed
on bilateral corporate drawings:
l Classification and Measurement: Allows to classify these facilities and drawings under one of the three IFRS9 classifications,
namely Amortized Cost (AMC), Fair Value through Other Comprehensive Income (FVOCI), or Fair Value through Profit or Loss
(FVPL).
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Regulatory Compliance
l Expected Credit Loss (ECL) and Impairment: Enables the calculation of Expected Credit Loss (ECL) and the implementation
of impairment assessments for these facilities and drawings.
l Modification or Derecognition: Allows to apply quantitative tests to modify or derecognise these facilities and drawings,
following the guidelines of IFRS9.
l Takeover from External Systems: Provides the capability to transfer bilateral corporate facilities and their drawings from an
external system to the Transact system.
Installation and Configuration Notes
IFRS provision calculation and posting is enabled for Facility contracts under the PV module.
The following points are to be noted during non-substantial modifications on contracts.
l On non-substantial modifications to contracts, when MODIFICATION.GAIN.LOSS accounting head is configured in
IFRS.ACCT.METHODS and IFRS.POSTING.DETAILS, the NPV difference is recognised in the separate PL
category.
l If the MODIFICATION.GAIN.LOSS accounting head is not configured, then on non-substantial modifications, the NPV
difference is recognised to the PL category corresponding to the AMORTISED accounting head.
l When the I9 license code is present in the COMPANY record, MODIFICATION.GAIN.LOSS accounting head is
available in IFRS.ACCT.METHODS and IFRS.POSTING.DETAILS.
l On non-substantial modifications to contracts, the Modification Date, Ifrs Event, Npv Previous Cashflow, Npv Current
Cashflow, Modification Percent, Modification Gain Loss, and Modification Status fields in EB.CASHFLOW record
are updated.
Technical Notes
The following are to be noted while configuring the MODIFICATION.GAIN.LOSS accounting head.
l MODIFICATION.GAIN.LOSS accounting head is posted with the NPV difference calculated at EIR. For FVPL and
HYBRID kind of configuration, the Npv Rate field of IFRS.ACCT.METHODS record will not be EIR for any of the
accounting heads and the EIR field is not updated in EB.CASHFLOW record.
l Hence MODIFICATION.GAIN.LOSS accounting head configuration is not applicable for FVPL and HYBRID
classifications.
The topics related to this feature are given below:
❖ Bilateral Corporate Facility and Drawings
❖ Modules Supported by the Temenos IFRS9 Solution
❖ Acct Head Types
❖ Modification and derecognition of a financial instrument
❖ Example – Non-Substantial Modification
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PSD2 Account Information ⥤ Retrieving the List of Beneficiaries based on Consent
Available from: 202308
PSD2 in Temenos Transact allows the TPP to retrieve and display the list of beneficiaries to the Payment Service User (PSU)
based on a valid consent. Account Consent Management (AIS) supports the returning of the beneficiary list according to Berlin
Group Standards.
The topics related to this feature are given below:
❖ Additional Consent Type
❖ Allowed Consent Types under Berlin Group
❖ Get Trusted Beneficiaries
Customer Data Protection ⥤ Supporting Multi-Entity Retention Period for Erasing Customer Data
Available from: 202309
The Customer Data Protection module is enhanced to support the retention period for erasing customer data at a multi-entity
level for Phased Erasure. Customer eligibility for data protection processing and setting up the retention period for erasure at
the country level is possible for banks that are multi-entities, given the data protection policy varies from country to country.
Erasure dates are derived based on Company Ret Period.
The topics related to this feature are given below:
❖ Company ID
❖ Purpose
❖ Amending a Purpose
❖ Phased Customer Erasure Process Workflow
❖ Allow Active Erasure
PSD2 Account Information ⥤ Returning a List of Standing Orders Linked to the Addressed Account
Available from: 202310
Transact PSD2 solution is enhanced to allow Third Party Providers (TPP) to retrieve and display the standing order details for an
account to the Payment Service User (PSU) using the transaction list endpoint based on valid consent. Account Consent
Management (AIS) supports the return of the standing orders list for an account based on the Berlin Group standards.
The topics related to this feature are given below:
❖ Account Information Calls
❖ Additional Consent Type
❖ Transactions
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Regulatory Compliance
Identity Comparison ⥤ Name Matching
Available from: 202310
Names are often used as an identifier. However, misspellings, aliases, nicknames, name similarities, and transliteration errors
bring unique challenges in matching names. To overcome this, a new module named Name Matching is introduced to solve one
or several of these challenges in a unique way to match names across various applications.
The topics related to this feature are given below:
❖ Name Matching
FATCA Client Identification ⥤ FATCA Balance Aggregation for a Joint Portfolio
Available from: 202311
The FATCA balance of the portfolio account was considered for FATCA balance aggregation process only when the role of the
customer was defined as the primary owner. The portfolio balance was not considered for joint owners as part of the balance
aggregation process.
This functionality is now enhanced to include the balances of the portfolio of all the joint owners in the FATCA Balance
Aggregation process, based on the type of ownership defined. The system determines the portfolio as eligible for the
aggregation process. The existing FATCA Aggregation logic is modified to consider the entire balance of the portfolio and
attribute to all the customers eligible for the aggregation.
The topics related to this feature are given below:
❖ Portfolio Cr Role
❖ Balance Aggregation for a Jointly Owned Portfolio
CRS Client Identification ⥤ CRS Balance Aggregation for a Joint Portfolio
Available from: 202311
The balance of the portfolio account was considered for CRS Balance Aggregation process only when the role of the customer
was defined as the primary owner. The portfolio balance was not considered for joint owners as part of the balance aggregation
process.
This functionality is now enhanced to include the balances of the portfolio of all the joint owners in the CRS Balance Aggregation
process, based on the type of ownership defined. The system determines the portfolio as eligible for the aggregation process.
The existing CRS Aggregation logic is modified to consider the entire balance of the portfolio and attribute to all the customers
eligible for the aggregation.
The topics related to this feature are given below:
❖ Portfolio Cr Role
❖ Balance Aggregation for a Jointly Owned Portfolio
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IFRS9 Financial Instruments ⥤ Corporate Club Facilities and Drawings
Available from: 202311
IFRS9 Financial Instruments functionality is enhanced to classify and measure corporate club facilities and their drawings.
It enables the following actions on corporate club facilities and their associated drawings:
l Classification and Measurement: Ability to classify and measure the club facilities and drawings into one of the three IFRS9
classifications - Amortized Cost (AMC), Fair Value through Other Comprehensive Income (FVOCI), or Fair Value through Profit
or Loss (FVPL).
l Modification or Derecognition: Ability to apply quantitative tests to modify or derecognize the drawings under the club
facilities, following IFRS9 guidelines.
l Takeover from External Systems: Capability to transfer the drawings under the club facilities from an external system to the
Transact system.
The topic related to this feature is given below:
❖ Corporate Club Facilities and Drawings
Payment Regulations ⥤ Confirmation of Payee (CoP)
Available from: 202312
Confirmation of Payee (CoP) service checks the account and reference details when the payer is setting up a new
beneficiary/payee to initiate CHAPS, Faster Payment, or record a standing order. CoP is one of the many ways the finance
industry handles fraud. The end-to-end CoP flow comprises of:
l CoP Requester – The payer sets up a beneficiary through his online banking capability at Bank A. The Bank A (payer bank)
forwards the beneficiary information captured by the payer to the third-party CoP service provider (gateway). The CoP
service provider after validating the information in the request connects with the Bank B (beneficiary bank) to retrieve the
beneficiary account data. With the information retrieved from Bank B, a CoP check is performed and a response is sent back
to Bank A by the CoP provider. This response received from CoP check is then relayed back to the payer for review by Bank
A. The payer takes necessary actions based on the received information, and once a successful "Add New Beneficiary"
journey is completed, the beneficiary information is recorded and stored.
l CoP Responder – Facilitates retrieval of payee account details (Beneficiary) by the CoP service provider using API data
exchange.
In Transact, the CoP Responder side service that is, online account data provisioning to CoP service provider is available. This
feature is enabled through "CNFPYE" module licensing.
The topic related to this feature is given below:
❖ Confirmation of Payee (CoP) - Responder
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FATCA Reporting ⥤ Generating Country Variation Report
Available from: 202401
The FATCA Reporting module is now enhanced with the the ‘Generating Country Variation Report’ functionality which generates
an XML report based on a country’s specific schema. For example, an XML report generated in Canada must follow the Canadian
schema.
An exit point is enabled to support these country-specific extensions which accept a locally customised API to fetch the
information required for populating the additional tags in FATCA.REPORTING.PARAMETER. Then, this information is
captured into the interim FATCA Tax Base file and the XML report is generated subsequently based on the country-specific
schema, which is a pre-defined XSLT in the system.
The topic related to this feature is given below:
❖ Generating Country Variation Report
IFRS9 Accounting ⥤ Impairment of Contingent Liabilities under IFRS9
Available from: R24AMR
This feature enables the impairment of contingent liabilities under IFRS9 and facilitates standard provisioning for Guarantees or
Standby Letters of Credit (SBLCs) issued using the 'Guarantees' product line within the Arrangement Architecture (AA)
framework.
The Provisioning (PV) framework is now extended to provide support for the following under the 'Guarantees' product line in
AA.
l IFRS9 Stage and Expected Credit Loss (ECL):
o Determines the IFRS9 risk stage for contingent liabilities.
o Calculates and records Expected Credit Loss (ECL) by applying the probability of default and loss given default
parameters.
l Standard Provision:
o Classifies contingent liabilities.
o Computes and records provisions based on specified standard percentages.
The topic related to this feature is given below:
❖ Impairment of Contingent Liabilities
Financial Risk Management ⥤ Liquidity Ratios and ALM (FRM04)
Available from: R24AMR
The new Basel III Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) enhancements now support the below
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features:
l LCR and NSFR computation on Analytics platform
l Pre-configured reporting templates as per Basel guidelines
l Ability to configure multiple reporting templates
l Ability to setup liquidity limits and early warning indicators
l Flexible rule-definition engine to support complex mapping requirements
l Simplified user interface
l Standard out-of-box visualizers and dashboards
The topic related to this feature is given below:
❖ Liquidity Ratios and ALM (FRM04)
IMPA36 ⥤ Impairment of Assets under IAS36
Available from: R24AMR
IAS 36 is an accounting standard issued by the International Accounting Standards Board (IASB) that outlines the procedures to
be followed for recognising, measuring, and disclosing impairments of assets. This standard applies to all assets except those
that are specifically covered by other IFRS standards (for example, inventories, financial assets, and assets arising from
construction contracts).
Temenos Transact supports the impairment of assets under the cost model of IAS 36 accounting standards with the new module
'IMPA36.'
With 'IMPA36,' it is now possible to:
l Identify assets subject to IAS36.
l Facilitate periodic reviews for the impairment of fixed assets by comparing the carrying amount with the recoverable value
and enabling the booking of impairment losses.
l Depreciate the asset based on the net carrying value of the asset (net of impairment loss).
l Reverse previous impairments if there have been significant favorable changes in the asset’s value and market conditions.
Installation and Configuration Notes
Ensure that the IMPA36 license, along with the FIXAMT and IA modules, is available for the impairment of assets under the
IAS36 functionality to work.
The topics related to this feature are given below:
❖ Introduction to Impairment under Cost Model
❖ Introduction to Impairment Reversal under Cost Model
❖ Impairment under Cost Model
