Temenos Regulatory Compliance

Foreign Account Tax Compliance Act (FATCA)

Foreign Account Tax Compliance Act (FATCA) compliance is a module fully integrated into Temenos Transact. It helps Foreign Financial Institutions (FFIs) comply with FATCA legislation out-of-the-box, supporting all three phases of the requirements including client classification, withholding and reporting.

The Foreign Account Tax Compliance Act (FATCA), enacted in 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act, is an important U.S. development to combat tax evasion by U.S. persons holding investments in offshore accounts.

Under FATCA, certain U.S. taxpayers holding financial assets outside the United States must report those assets to the IRS. In addition, FATCA will require foreign financial institutions to report directly to the IRS certain information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest.

Client Identification

The Temenos FATCA modules provide comprehensive support for all aspects of the FATCA regulations. Relevant client data is captured and held to enable the tracking of individual, joint, beneficial and substantial owners of assets and to help your bank identify recalcitrant customers.

two men looking at financial results

Withholding Tax

The Temenos FATCA solution provides support to Financial Institutions who, where applicable, need to apply Withholding Tax. Your bank can identify income which is subject to tax and, where necessary, apply 30% withholding tax on US-sourced income for recalcitrant account holders and non-participating FFIs.


The Temenos FATCA modules provide Financial Institutions with the ability to create FATCA compliant submission files ready for uploading to the local Tax Authority. This enables reporting on US customers and entities to the regulatory authorities, along with account balances and income and credit items.