Introduction to Multi-Currency Accounts

Multi-Currency Accounts (MCYAAR) is a module under the Arrangement Architecture (AA) umbrella of products and is part of the Temenos Retail Banking suite of products.

The MCYAAR module provides multi-currency account capabilities and maintenance for a financial institution. The module allows the user to create a multi-currency account, making use of Retail Accounts to maintain the currency wise positions of any allowed currencies, without diminishing the existing accounts features and functionalities. 

Some of the key features are:

• Create a multi-currency account arrangement
• Create and link multiple sub-accounts with a single base currency account at any time
• Define base currency and allowed currencies
• Perform credit transactions for the multi-currency (MCY) account
• Route funds to proper currency accounts based on the payment currency
• Supports single or multiple ownership for the MCY account

• Link single/multiple debit cards to MCY sub-accounts
• Combined statement generation.

Configuration

The AA.PRODUCT.LINE provides high-level definition of the business components (Property Classes) required to construct a product belonging to that line.
The Product Lines are defined by Temenos and cannot be modified. The financial institution then uses these building blocks to construct the individual multi-currency products, which can then be made available for sale to its customers. The following Property Classes are enabled for the MCY Product Line.

• Account
• Activity API
• Activity Messaging
• Activity Presentation
• Alerts
• Closure
• Constraint
• Customer
• Eligibility
• Officers
• Statement
• Sub Arrangement Rules

The AA.PROPERTY is an instance of AA.PROPERTY.CLASS and these components constitute an account product. The Property Classes and Properties are made mandatory or optional based on the AA.PRODUCT.GROUP level but subject to the Product Line definition. The AA.PRODUCT.DESIGNER is used to create the account products required.

Illustrating Model Parameters

The product conditions of a Property Class are evaluated to bring out the features of the Property Class. The system defaults the values in the product condition in an arrangement during its creation. The negotiability or default values and other restrictions are also defined in the product condition. These product conditions along with the properties derived from the Property Classes are grouped together to build products.

The product conditions are dated and some of the product conditions have currency as part of their ID. When the currency forms a part of the product condition ID, the user needs to create different conditions for each currency in which the product is available. When a new condition is created or an existing one is amended, the product to which the condition is linked has to be proofed and published.

Multi-Currency Account Model Parameters are:

S.NO	Parameter	Description
1.	Account	The Account Property Class is used by all account-based products. This Property Class primarily controls the description of the account. The ACCOUNT property allows the user to define and control Balance Treatment, Posting Restriction, Linked Account Number (for memo accounts), Currency Market, Date Convention related setup for the Account. Although account names are typically account specific, generic titles can be defaulted from the product and can be replaced or given additional detail at the arrangement level. Each Temenos Transact product defined and processed in AA can have a single ACCOUNT Property defined.
2.	Closure	The Closure Property Class defines the rules and behavior for processing closure of an arrangement. An arrangement account can be closed automatically or manually and it is defined in the product condition. On reversal of a new arrangement, closure is triggered automatically.
3.	Customer	The Customer Property Class is used by all products. This Property Class is used to define all the parties involved in an arrangement and their respective roles. The customer is always defined at the arrangement level. Each arrangement can have one or more legal owners defined in OWNER.
4.	Eligibility	The Eligibility Property Class is used to evaluate eligibility of a customer for a specific product based on a set of rules. The eligibility evaluation is triggered at a given frequency or when there is a static change for the customer. In Temonos Transact, first the EB.CONTEXT has to be created. Based on this, rules are defined using Rules Engine. Once these rules are validated, the EB.RULES.VERSION and EB.RULES are created in the system.
5.	Officers	The Officers Property Class enables the user to define: Product Arrangement specific officers Officer’s roles Primary officer Additional officer Each Temenos Transact product defined and processed in AA can have a single OFFICERS Property defined.
6.	Statement	The Statement Property Class is used to define the legacy ACCT.STATEMENT feature at AA level. Statements may be produced daily (every working day), every 1-9 weeks, twice a month (on the 15th and the last day of the month) or every 1-12 months on any day of the month. Up to nine statement cycles may be specified for each Account and each statement cycle is independent. In addition to this, special interim statements can be enabled. This Property Class also controls if advices are to be produced or not, when interest and charges are applied, and whether detailed interest statements (interest scale) should be produced.
7.	Sub.Arrangement.Rules	The Sub-Arrangement Property Class allows the user to define the conditions for currency accounts under a MCY structure. The Sub-Arrangement Rules Property Class is available for the MCY Accounts Product Line. This Property Class enables to set rules for the sub-arrangements under a master arrangement. It is attached to the MCA Accounts product to control the allowed customers, currencies and products of the currency wise sub-accounts.

Illustrating Model Products

The Multi-Currency Account (MCYAAR) Product Line provides multi-currency functionality for Accounts in Temenos Transact. This module allows the user to create a MCY account under the MCY Account Product Line.

S.No	Product Name	Features
1	Multi-Currency Account	Base Currency: USD Sub-Accounts allowed currencies: Any Eligibility: Resident at least 18 yrs old, any Customer(s)/Owner(s) should apply for Parent and all sub-accounts. Sub-Account allowed products: AR Accounts only