Introduction to IBAN
International Banking Account number (IBAN) is an international standard that allows to uniquely identify bank accounts across national borders. Based on the IBAN, it is possible to identify both the country and the bank where the account is maintained.
In Temenos Transact, the IBAN module (IN):
- Manages the Centralised Reference Data related to IBAN.
- Provides a set of REST APIs through which the reference data can be accessed
A set of public methods are available under the System Table (ST) module to access or validate the IBAN-related data against the reference directories.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is the formal registrar of the current standard IBAN Standard – the ISO 13616-2:2007.
SWIFT regularly releases the SWIFTRef IBAN Directory Plus directory that includes following files:
- The IBAN Structure files – These files contain information related to IBAN formats registered by countries that adopted are in the process of adopting IBAN in their payment systems and can be used to validate the format of an IBAN. The file includes information about all SEPA countries as well as non-SEPA countries.
- The IBAN Plus files – These files contain IBAN-related data for financial institutions in SEPA countries and non-SEPA countries that have adopted IBAN and aid in deriving the BIC from an IBAN.
- The Exclusion List files – These files contain a list of IBAN National IDs that are not allowed in IBANs and can be used to indicate with certainty that the IBAN is not valid.
The IBAN module provides the capability to store the IBAN Structure, IBAN Plus, and the exclusion list and exposes a set of APIs that enables the bank to:
- Retrieve the IBAN structure for a particular country
- Validate a supplied IBAN.
- Return the details of a supplied IBAN.
- Derive BIC code from IBAN.
- Check if IBAN is optional or mandatory for customer payment in a given country.
- Temenos supports the upload of the SWIFTRef IBAN Plus directory published by SWIFT. The upload processes for the SWIFTRef IBAN Plus files into the Temenos IBAN Structure, IBAN Plus, and Exclusion List are part of the Centralised Reference Data module (RD).
- Clients upgrading from a release before 201907 who have already licensed Delivery (DE) or IBAN module (IN) in the prior release, can get the RD license code at no additional cost. Before starting the upgrade, the customers should request the license code of the RD module from their account manager.
Various Temenos modules are using the functionalities provided by the IBAN module.
- The Arrangement and the Account modules are using the IBAN structure of the local country to generate an IBAN for a new account
- The payment modules use the IBAN validation functionality to ensure the IBAN captured by the customers or users are valid, and so on.
The following image shows the Component Structure of IBAN module.
Product Configuration to Generate IBAN
The IBAN module comprises of setup tables and the applications using the IBAN.
The section covers the setup required to generate IBAN for Temenos Transact accounts.
Parameterising the Bank ID and Branch ID
Iban Bank Id and Iban Branch Id fields in the COMPANY application are used to define the bank identifier and branch identifier for the company and as per the IBAN Structure of the country.
- Iban Bank Id is NWBK for Natwest.
- Iban Branch Id is 601613, that is, branch sort code.
The information from these fields are used for the generation of the IBAN numbers for Temenos Transact accounts for this company.
Enabling IBAN generation
Retail Accounts – AR/AL/AD:
For Retail Accounts (AR), Lending (AL) and Deposit Arrangements (AD), the IBAN generation in Temenos Transact is controlled through the Generate Iban field in AA.PRD.DES.ACCOUNT application.
The Generate Iban field must be set to Yes to generate IBAN for the product.
The simulation process triggers the alternate account number generation, using the appropriate configuration in the COMPANY application and considering the rules defined in the IBAN Structure (IN.IBAN.STRUCTURE) for the country.
The alternate account numbers generated during the simulation process are stored or locked in the ALTERNATE.ACCOUNT table for use in the same simulation until it is converted to an active arrangement contract.
In the event of rejection of the simulation or if the simulation is not materialised into an arrangement contract, the locked alternate account numbers are released during the simulation archival process.
Legacy Accounts (AC):
For the legacy account module (AC), it is possible to generate IBANs for group of accounts. This is controlled using the Generate Iban field in the ACCT.GROUP.CONDITION application.
The Generate Iban field must be set to Yes to generate IBAN for the group of accounts.
Customising the generation of the IBAN:
The Alt Acct Gen Api field in the ALT.ACCT.PARAMETER application hooks the client specific API for generating the alternate account number.
The API, if present, takes precedence during the generation of the alternate account number and therefore, in such a case, the alternate account number generation is done based on the client specific logic. If the API is not present, the IBANs are generated based on the core logic.
Illustrating Model Parameters
Model Parameters are not applicable for this module.
Illustrating Model Products
Model Products are not applicable for this module.
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