Section 7R: Record Keeping

1) The Reporting entity shall maintain following documents and records accurately and securely for a minimum of five years after the termination of the business relationship or from the date of the transaction  in case of occasional transactions:-

(a) All documents and other information related to the identification and verification of the customer and beneficial owner,

(b) All documents, records and conclusion of the analysis of customer or beneficial owner and transaction,

(c) Documents and details of account and business relation of reporting entity,

(d) All documents and records relating to domestic and foreign transactions,

(e) Record and documents on attempted transactions,

(f) Other documents and records as prescribed by regulators.

2) Notwithstanding anything contained in sub-section (1), the reporting entity shall keep some prescribed documents and records for more than five years.

3) The reporting entity shall keep and maintain the documents and records in such a way that it shall be sufficient to reconstruct such information for the use of legal action as evidence in accordance with sub-sections (1) and (2).

4) Documents and records to be maintained pursuant to this section should be kept so that they can be made readily available to competent authorities upon demand.

5) The reporting entity shall keep the report of suspicious transactions for five years.

¹5A) The information and details taken from the customer by the indicting institution by this Act or the prevailing law shall be kept confidential except in cases where the prevailing law must disclose it. If someone violates such confidentiality, the regulatory body can act against such an indicting entity per Section 7U.

6) The indexing institution will make other arrangements to preserve documents, details and records as prescribed.

^{1Added by Act, 2080 to amend certain Acts relating to Prevention of Money Laundering and Promotion of Business Environment.}