Regulation 12 Record-keeping procedures

(1)

Record-keeping procedures maintained by a person are in accordance with this regulation if they require the keeping, for the prescribed period, of the following records—

(a)

in any case where, in relation to any business relationship that is formed or one-off transaction that is carried out, evidence of a person’s identity is obtained under procedures maintained in accordance with regulation 7 or 9 above, a record that indicates the nature of the evidence and—

(i)

comprises a copy of the evidence;

(ii)

provides such information as would enable a copy of it to be obtained; or

(iii)

in a case where it is not reasonably practicable to comply with paragraph (i) or (ii) above, provides sufficient information to enable the details as to a person’s identity contained in the relevant evidence to be re-obtained; and

(b)

a record containing details relating to all transactions carried out by that person in the course of relevant financial business.

(2)

For the purposes of paragraph (1) above, the prescribed period is, subject to paragraph (3) below, the period of at least five years commencing with—

(a)

in relation to such records as are described in sub-paragraph (a), the date on which the relevant business was completed within the meaning of paragraph (4) below; and

(b)

in relation to such records as are described in sub-paragraph (b), the date on which all activities taking place in the course of the transaction in question were completed.

(3)

Where a person who is bound by the provisions of regulation 5(1) above—

(a)

forms a business relationship or carries out a one-off transaction with another person;

(b)

has reasonable grounds for believing that that person has become insolvent; and

(c)

after forming that belief, takes any step for the purpose of recovering all or part of the amount of any debt payable to him by that person which has fallen due;

the prescribed period for the purposes of paragraph (1) above is the period of at least five years commencing with the date on which the first such step is taken.

(4)

For the purposes of paragraph (2)(a) above, the date on which relevant business is completed is, as the case may be—

(a)

in circumstances falling within Case 1, the date of the ending of the business relationship in respect of whose formation the record under paragraph (1)(a) above was compiled;

(b)

in circumstances falling within Case 2 or 3, the date of the completion of all activities taking place in the course of the one-off transaction in respect of which the record under paragraph (1)(a) above was compiled;

(c)

in circumstances falling within Case 4, the date of the completion of all activities taking place in the course of the last one-off transaction in respect of which the record under paragraph (1)(a) above was compiled;

and where the formalities necessary to end a business relationship have not been observed, but a period of five years has elapsed since the date on which the last transaction was carried out in the course of that relationship, then the date of the completion of all activities taking place in the course of that last transaction shall be treated as the date on which the relevant business was completed.