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FIC Act FIC Act Compliance (CDD, AML/CFT, Reporting)
A client opened an account in 2015 and closed it in March 2022. The FSP shreds all her due diligence records in 2023, saying the account had been closed for a year. Which statement is correct?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) That was correct, because the account had closed.
- b) That was correct, because records are kept for one year.
- c) That was correct, because she had not been suspected of anything.
- d) The records had to be kept until at least March 2027.Correct
Why this is the answer
Records of customer due diligence and transactions must be kept for at least five years from the date the business relationship ends. The relationship ended in March 2022, so the records had to be kept until at least March 2027, whether or not there was any suspicion.
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