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User Guide

Information in this document is subject to change without notice.

No part of this document may be reproduced or transmitted in any form or by any means,
TEMENOS User Guide – WAKALA LIABILITY

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The Programs (which include both the software and documentation) contain
proprietary information of Temenos Holdings NV and they are provided under a
license agreement containing restrictions on use and disclosure and are also
protected by copyright and other intellectual and industrial property laws.

Reverse engineering, disassembly or de-compilation of the Programs, except to

the extent required to obtain interoperability with other independently created
software or as specified by law, is prohibited.

The information contained in this document is subject to change without notice.

If you find any problems in the documentation, please report them to us in writing.
Temenos does not warrant that this document is error-free.

Except as may be expressly permitted in your license agreement for these

Programs, no part of these Programs may be reproduced or transmitted in any
form or by any means, electronic or mechanical, for any purpose, without the
express written permission of Temenos Holdings NV.

T24 and jBASE are registered trademarks of Temenos Holdings NV. Other names
may be trademarks of their respective owners.

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Item Detail

PRODUCT NAME Wakala

DOCUMENT TYPE User Guide

CONTACT BACK TO gpack@temenos.com

SPECIAL COMMENTS (1) If Field Information is Crossed Out, it

implies that the field is Not used under
the current version of the Development.

( Document Specific )
SPECIAL COMMENTS (2)

(Development / Support) Specific

SPECIAL COMMENTS (3)

(Client Specific)

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Serial No Last Doc Version Author Comments

Updated
1.1 17.11.2007 Version 1 Jayadeva New
Vijay Kumar

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Table of Contents
Overview of this guide........................................................................................................................ 6
Assumptions ................................................................................................................................... 6
Document Support ......................................................................................................................... 6
Scope of this guide ......................................................................................................................... 6
INTRODUCTION ............................................................................................................................... 7
Document Purpose......................................................................................................................... 7
TEMENOS T24 TM Modules Supported.......................................................................................... 7
Abbreviations used in this Guide.................................................................................................... 7
Work Flow .......................................................................................................................................... 8
Work Flow Diagram ........................................................................................................................... 9
Process Flow ................................................................................................................................... 10
Product Setup in IS.H.PRODUCTS ............................................................................................. 11
Wakala Input new Contract .......................................................................................................... 12
Amend Contract: .......................................................................................................................... 14
Enquires ........................................................................................................................................... 17
Customer Position Enquiry ........................................................................................................... 17
Unauthorised Contract Entries ..................................................................................................... 18
Forward Entries ............................................................................................................................ 18
Authorised Contract Entries ......................................................................................................... 19
Deposit Wakala Accounting Entries in T24...................................................................................... 20

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Overview of this guide

The purpose of this guide is to help the user to understand the various templates and the fields in
the templates and the crucial setup of any PARAMETER Files in the WAKALA Islamic Product.

Assumptions
It is assumed that the reader of this guide has knowledge of the following.

 Fair knowledge in TEMENOS T24 TM

 Basic knowledge in MM.MONEY.MARKET module

If any of the above assumptions are not met, then get back to the Project Manager
Onsite for HELP.

Document Support
Any queries in any part of this document can be addressed to gpack@temenos.com. Refer to the
Contact Back To address in the Document Detail pane on Page 3 of this Guide for support.

Scope of this guide

User Reference information of this particular development is the only scope of this guide.

Installation, Customization Procedures, Release Information, Guidelines for testing,

Operation and Migration procedures are NOT under the scope of this Document

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INTRODUCTION
It is similar to a money market account where deposits are used in investments and a commission
and a share of profits are paid to depositors.
WAKALA is an agency contract which generally includes expert’s fees. Banks often use Wakala
for large deposit accounts. The client has invested capital, it appoints an Islamic bank as its agent
and pays an expert’s fee to the bank for managing the fund.
Wakala as a Shari’a compliant is an alternative to Central Bank CDs

Document Purpose
This document provides information to the user to understand the different parameter files and
their setup. This document provides detailed information about every Field of all the Files used in
the WAKALA Islamic Product

TEMENOS T24 TM Modules Supported

The following Files in the Following Modules are Supported and Used by this WAKALA Islamic
Product.

 MM.MONEY.MARKET

Abbreviations used in this Guide

S – Single Value Field
M – Multi Value Field
AMS – Associated Multi Value Starts Here
AM – Member of Associated Multi Value
AMC – Associated Multi Value Closes Here

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Work Flow
 Client will request that he wishes to deposit money with bank and he appoint the bank
As he is agent for the purposes of entering into transactions from time to time to achieve
Or adjust profit percentage according to the transaction status under terms of
“WAKALA MUTLAQHA” or an absolute Wakala arrangement.
 Bank as an agent will reply to the customer a WAKALA offer Shows profit percentage and
start data and maturity date of the transactions.
 Based On WAKALA MUTLAQHA arrangements following tables shows rights and roles for
WAKALA parties (The bank / the client) as following:

Bank Client
Bank has right for following activities: Client has right for following activities:
-Adjust profit percentage any time before - Agreed profit a Wakala Contract sign
contract maturity date and without customer date
approval based on the WAKALA
- Bank to inform the client in case Agreed
MUTLAQHA agreement.
profit
- Bank has right to collect following fees
Changed before contract maturity
from the client:
- Early maturity of Outstanding contracts ,
 Contract Early Maturity
Still
 Management Fees
The bank has the right to adjust the profit
 Any miscellaneous charges to
Percentage or collect from the client early
cover contract Lose
Maturity fees.
- Bank can change profit percentage for
Rollover contracts without informing clients - Stop rollover agreements of the Wakala
agreements.

 Following Advices will be created after Wakala agreement signed

- Wakala Contract advice ( Display all contract details like start date / End date /
principal / Profit amount / Rollover agreements )
- Profit Adjustment Report to the client
- Early Maturity Report to the client.

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Work Flow Diagram

Client Apply for Wakala Deposit request

At Value Date
Bank gives an offer for
Bank to collect agreed principal
WAKALA MUTLAQHA to from the Client Wakala Account
Client with Rollover or Client current account
agreement or not Rollover

At Maturity Date
Credit client Account with
Principal amount plus
agreed profit

Deposit Wakala Workflow

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Process Flow
The operations of the Deposit Wakala will be managed through the following activities :

 Setup Walaka Product in IS.H.PRODUCTS

 Input new Wakala Deposit contract

 Financial Contract
 Settlement Details
 Rollover Details

 For O/S Contracts following Actions are available:

 Change Profit Percentage

 Change Rollover Information
 Increase/Decrease Principal
 Early Maturity

 Inquiries and reports

 Basic Accounting Entries
 List of Un-authorized Accounting Entries
 List of Authorized Accounting Entries
 List of Forward Accounting Entries
 Customer position

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Product Setup in IS.H.PRODUCTS

Description: Input description and short description of the product.

Profit Basis: Input profit basis to be used.

Product type: This is not used in this product. So, input NUL, which will be used by system.

Category: Define Category of WAKALA

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Wakala Input new Contract

Fields Descriptions
Field Name Field Description
Customer Wakala Deposit Customer
Deal Date Deal Input Date ( Optional – Back Value Date possible)
Category Wakala Deposit Category , To be excluded from Term
deposits for Profit Management system contracts
Currency Deal Currency
Principal Principal Amount
Start Date Deal Value Date
Maturity Date Deal Maturity Date
Profit Basis Will default to Profit Day Basis as specified on the
Currency table for the currency of the contract. Can be
changed at contract level.
Profit Rate Agreed Profit Percentage
Draw Down Account Customer Wakala Deposit Account
Principal Liquidate Account Account to Liquidate Principal Account
Profit Liquidate Account Account to liquidate Profit Amount
Principal Beneficiary Bank Identifies the Beneficiary Bank which is to be used for

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Auto Rollover (Y/N)
Auto Capitalize Profit(Y/N)
Auto Rollover Term
Roll profit Pcnt
Final Maturity
TEMENOS Confidential
the Principal Amount of Deposit contract types at
maturity or for Placement contract types at drawdown
when the customer has requested external delivery of
the proceeds of the transaction.
This field is used when the customer does not require
the funds to be credited to his current account but
instead requests an external delivery of the funds to a
Bank different to the one where you maintain your
Nostro account.
Optional N , Y If Customer need to Rollover this Wakala
contract after maturity
IF Auto rollover, Mandatory input to show new contract
with profit plus principal or only principal amount.
IF auto rollover , To define new maturity date for the new
contract
Profit percentage , if it is null and automatic rollover ,
System will default current profit percentage
Final maturity for Auto – rollover option for this contract
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Amend Contract:
Contact can be amended to:
 Change Profit Percentage
 Change Rollover Information
 Increase/Decrease Principal
 Early Maturity

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Contains a different tabs / screens to amend the contract easily.

 Manual Rollover
 Auto Rollover
 Settlement / Charge Details

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Enquires

Customer Position Enquiry

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Unauthorised Contract Entries

Forward Entries

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Authorised Contract Entries

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Deposit Wakala Accounting Entries in T24

Action Accounting Entries

Wakala Deposit Deal DR : Customer Wakala Account ( Principal Amount)

Date
CR : LMM LIVE CR CONTRACT ( Liability Principal Amount)

Daily Profit DR : Wakala Profit Accrual

Amortization
CR : Accrual of Profit and Commission Paid to customer

Wakala Deposit DR : LMM LIVE CR Contract ( Liability – Principal amount)

maturity Date
CR : Customer Wakala Account ( Principal Amount)

DR : LMM Accrual Profit Paid to customer (Accrued Profit Amount)

CR : Customer Wakala Account (Accrued Profit Amount)

In case of Automatic DR : Customer Wakala Account ( Principal Amount + Last Profit Amount)
Rollover
CR : LMM Live CR Contract

In case of Reducing System automatically will made adjustment for the difference PL should be
profit Rate before paid to the client by the new rate at maturity date ( Change core field of
maturity date profit rate only )

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