RECORD KEEPING – A MUST! | Temple Consulting

Recommendation 11 of the Financial Action Task Force (FATF) requires financial institutions to have proper and effective policies, procedures, and controls in place to ensure that record of transactions is maintained during, as well as, after the course of the business relationship. In Mauritius, it is provided by Chapter 11 of the Financial Services Commission Anti Money Laundering and Countering The Financing of Terrorism Handbook (FSC Handbook), as well as Section 190 of the Companies Act, that all records obtained through CDD measures, records of transactions (domestic or international) and copies of suspicious transactions reports shall be maintained for a period of at least 7 years. Record keeping, even if it appears to be more of a headache is an essential component of the AML and CFT regime because it acts as evidence that the company is compliant with regulatory obligations and provides assistance to law enforcement agencies in conducting financial investigations upon request.

What records must be kept?

A business may keep either a copy of verification material, or references to it. Businesses should consider holding CDD material separately from the client file for each retainer, as it may be needed by different practice groups within the business.
Businesses should consider keeping records of decisions on the risk-based approach concerning the extent of CDD to be undertaken. This does not need to be in significant detail, but merely a note on the CDD file stating the risk level attributed to a file and why it was considered that sufficient CDD information had been obtained.
Businesses must keep all original documents or copies which are admissible in court proceedings.
Businesses should keep comprehensive records of suspicions and disclosures. Section 13(5) of the Financial Intelligence and Anti-Money Laundering Act stipulates that where a suspicious transaction has been reported to the Financial Intelligence Unit (FIU), the Director of the FIU may, not later than 15 days before the end of the 7th year following the completion of the transaction to which the suspicious transaction report relates, by written notice, require the financial institution to keep the records in respect of that suspicious transaction for such period as may be specified in the notice.

While doing record-keeping, businesses should ensure records are not inappropriately disclosed to clients or third parties to avoid offences of tipping off and prejudicing an investigation. This may be achieved by maintaining a separate file, either for the client or for the practice area. All disclosures made to third parties should be in line with the principles of the Data Protection Act 2017 and the policy of the company. It is recommended to seek prior approval of the concerned person whose data is being disclosed. However, a regulatory exception is made on seeking approval of the person concerned for disclosure of information in relation to queries from regulatory bodies such as the FIU/FSC concerning investigations for suspicious transaction.

Depending on the size and sophistication of the business’s record storage procedures, it may choose to:

Scan the verification material and hold it electronically
Take photocopies of CDD material and hold it in hard copy with a statement that the original has been seen
Accept certified copies of CDD material and hold them in hard copy
Keep electronic copies or hard copies of the results of any electronic verification checks
Record reference details of the CDD material

How Can Temple Consulting help you?

Temple Consulting Ltd (‘TCL’) established in 2007, has been assisting financial entities in meeting their regulatory and legal requirements.

Our role will be fully aligned with the requirements of the law.

We have a team of Compliance Consultants with proven expertise in advising companies to meet regulatory obligations.

We remain available over the phone, by email and to be present on-site as required.

In the event of absences/leave, there is no disruption in our service delivery. There is always be a senior representative of TCL present to liaise with your organisation as required.