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Temenos Regulatory Compliance

Qualified Intermediary

Temenos Qualified Intermediary module helps financial institutions of all sizes reduce risk and improve profitability while safeguarding regulatory compliance.

Our solution enables banks, who act as Qualified Intermediary (QI) under chapter III of IRS (USA), to comply with documentation and withholding requirements relating to income received from US securities.

Why Temenos Qualified Intermediary

Temenos Qualified Intermediary provides Temenos Core clients with a fully automated solution designed to help Foreign Financial Institutions subject to Qualified Intermediary (QI) agreement with US Inland Revenue Service (IRS). Under Chapter III (IRS) rules, Financial Institutions that act as Qualified Intermediary (QI) are required to comply with Tax withholding rules related to income sourced from US securities received by their customers and customer portfolios. Temenos Qualified Intermediary addresses the challenges of QI by helping entities meet their obligations with a comprehensive solution for all aspects of due diligence, withholding and capturing the data set essential for downstream reporting.

Fully automated Qualified Intermediary solution

Supports the fundamental processes, in conjunction with complimentary Temenos Core modules, from identification of US-sourced securities income, Due Diligence, Tax withholding, and payment in line with US Inland Revenue Service (IRS) requirements.

Exhaustive & detailed due diligence process

Examines existing account holders and portfolios to determine whether income from US income transactions is subject to withholding under either Chapter III (QI) or Chapter IV (FATCA) of IRS by identifying transactions with US-sourced income, viewing individual client characteristics, processing self-certification documentation, and tax withholding considering the Double Taxation Avoidance Agreement (DTAA) between the USA and the operating country.

Flexible rules-based approach to determine QI status

A fully configurable rule set enables clients to specify the rules, data elements, and documentation required to determine the QI status of a bank’s customers and customer portfolios.

Distributed database

US Tax Database to support downstream Reporting processes

A comprehensive data store of the detailed information pertaining to banks’ customers and portfolios required for QI report generation. This includes the following elements: corporate events, customer/portfolio classifications, income codes, exemption codes, and recipient codes as per both Chapter III and IV, tax types with corresponding tax rates and amounts.

Replace manual processes and reduce costs of compliance

Remove inefficiencies associated with manual processing, therefore, helping banks better serve their customers and reduce the headline costs related to compliance processes and avoid penalties related to incorrect withholding.

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Leading-Edge Technology

Built on Temenos Core, our solution provides scalable, highly performant, best-in-class capabilities. Including advanced API-first technology, which empowers banks to rapidly innovate, connect to ecosystems, and enable developers to build their connectivity or apps.

Product Overview

Temenos Qualified Intermediary is a fully automated solution designed to provide Tax, Compliance, and operations teams with an efficient, cost-effective process for financial institutions, subject to Qualified Intermediary status. It helps banks to identify the withholding tax status of their customers and customer portfolios receiving US-sourced income.

Foreign financial institutions and foreign branches of US foreign financial institutions that pay income sourced from US securities to their customers have the option to enter into a Qualified Intermediary (QI) Agreement under Chapter III of the IRS.

In conjunction with the following complimentary Temenos Core modules; Securities, Tax, FATCA, and Document Validation, our solution supports the fundamental processes a Qualified Intermediary needs to perform to comply with IRS rules, including:

    • Application of the required identification and due diligence procedures with respect to the bank’s customers and customer portfolios and;
    • Determine whether income from US income transactions is subject to withholding under either Chapter III (QI) or Chapter IV (FATCA) of IRS;
    • Where chapter III withholding applies; withhold and pay tax on income from US securities to the Inland Revenue Service (IRS) subject to relevant Tax Treaties between the customer’s tax residence and the USA and;
    • Capture all data required to support Reporting purposes, including customer and customer portfolio classification and subsequent withholding statuses.

    Alternatively, it is also possible for clients to implement the Qualified Intermediary module either independently (with Temenos Core) to interact with a client’s existing Wealth Management and Tax systems or in any combination with the other Temenos Core modules highlighted.

    Fully automated solution

    Temenos Qualified Intermediary significantly reduces operational inefficiencies and costs associated with manual processes.

    Flexible Component-based implementation

    Modular design enables ‘progressive renovation’ by providing the option to implement in phases as the client requires.

    A comprehensive solution to support fundamental aspects of determining QI status

    Our solution addresses the challenges faced by Qualified Intermediaries with a comprehensive solution supporting the fundamental processes essential to help firms meet their compliance obligations in line with IRS rules.

    Tax/Regulatory solutions for global compliance

    Temenos Qualified Intermediary is part of the Regulatory Compliance product suite providing complimentary Tax and compliance solutions to support our global client base.

    Supporting Products


    Designed to meet the requirements of Tax and Compliance professionals. Temenos FATCA module helps Foreign (Non-US) financial institutions (FFIs)of all sizes reduce risk and improve profitability whilst safeguarding regulatory compliance.

    Security Mega Trends Shaping Digital Banking Security


    The Securities Module provides facilities for trade; administration; safe custody and settlement of international securities on behalf of the bank and their customers.


    The Tax Engine (TX) module interfaces Temenos Transact transactions to external tax systems mainly for tax calculations and tax reporting. Tax Engine module is licensed as part of Temenos Infrastructure (TP).