Module 5: Record Keeping and Ongoing Monitoring

Record Keeping and Ongoing Monitoring

A copy of the evidence of identity and the client files must be retained for at least five years.
In addition, the Regulations require that the organisation conducts ongoing monitoring of business relationships, which includes keeping CDD information up-to-date.

Ongoing monitoring

This latter requirement will usually be conducted by fee earners handling matters and involves staying alert to suspicious circumstances which may suggest:

• money laundering;

• terrorist financing; or

• the provision of false CDD material.

Keeping information up-to-date

Where a new matter is opened for an existing client, we must check that the CDD information held by the organisation is correct and up-to-date.

Information regarding addresses must be updated if there has been a gap of three years or more between instructions.

When returning a client’s files, care should be taken to ensure that the evidence of identity is extracted from the files and retained by the organisation.

Compliance with organisation procedures

An organisation reserves the right to ask for any files at any time or check records in order to verify that the money laundering identification procedures are being followed appropriately.

Failure to comply with the procedures could lead to disciplinary action.