Record keeping

(1) IFS Practitioners shall maintain appropriate records to establish an audit trail for the purposes of criminal investigation. (2) For the purpose of this regulation, what is considered appropriate under paragraph (1) above shall require a balance between normal commercial considerations and the needs of investigating authorities, and these should include evidence of client identities and addresses and, if relevant, the circumstances in which reliance was placed on another’s due diligence (3) All documentation shall be prepared and stored (whether by original documents, copies or on microfiche or other accessible computerised form) in such a manner that they are accessible within a reasonable time and readily available to comply with any court orders or directives regarding disclosure of information or confiscation of assets. (4) Where practicable, appropriate evidence of client identification, account opening or new business documentation and adequate records identifying relevant financial transactions shall be kept for a period of five years following the closing of an account or the end of the transactions or the termination of the business relationship. (5) Where there has been a report of a suspicious transaction or an IFS Practitioner is aware of a continuing investigation into money laundering or other criminal activity relating to a client or a transaction, records relating to the transaction or the client shall be retained until confirmation is received that the matter has been concluded. Second Schedule.