Knowledge Base
Maintain and manage regulatory client records in compliance with legal requirements.
Which directive requires consultation of the beneficial ownership register and reporting of discrepancies to the registrar?
The 5th Anti-Money Laundering Directive requires organizations to consult the beneficial ownership register and report any discrepancies to the registrar in accordance with Article L.561-47-1 of the Code monétaire et financier. This directive strengthens transparency and anti-money laundering measures.
Which article of the Code monétaire et financier imposes a five-year retention period for transaction-related documents?
Article L.561-12 of the Code monétaire et financier imposes a five-year retention period for transaction-related documents. This duration constitutes a legal minimum; other regulations may impose longer periods, such as seven years for telephone recordings upon request from the authorities.
What is the minimum frequency for updating information on high-risk clients in accordance with FATF recommendations?
In accordance with FATF recommendations, high-risk clients must be reviewed at least annually. This requirement is reinforced by Article L.561-5-1 of the Code monétaire et financier, which mandates that information relating to the business relationship be kept up to date throughout its duration.
What event must imperatively trigger an update of client information according to the AMF?
The AMF states in its position-recommendation DOC-2019-16 that updating client information is essential whenever an event changes the client's situation. This includes significant changes in personal or professional circumstances, such as marriage, divorce, relocation, change of employment, or a change in the capital structure for legal entities.
The GDPR prohibits any data retention beyond its usefulness for the commercial relationship.
Although the GDPR strictly governs data processing in accordance with the principles of minimization and storage limitation, it provides exceptions for compliance with legal obligations. Accordingly, Article 6(1)(c) of the GDPR permits processing where it is necessary for compliance with a legal obligation, such as those imposed by AML/CFT regulations.
Minimum retention period for due diligence documents
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Article L.561-12 of the Code monétaire et financier imposes a five-year retention period from the closure of accounts or the cessation of the business relationship for due diligence documents. This duration constitutes a legal minimum; other regulations may impose longer periods.
Digitization of regulatory client files is prohibited.
Digitization of regulatory client files is permitted subject to security and integrity safeguards under the decree of January 6, 2021. Organizations must ensure that digitized documents are readily accessible and that their integrity is preserved.
Categorize items by dragging them to the appropriate zones
Items to categorize:
Identification and identity verification
Knowledge of the business relationship
Contractual documents
Monitoring
The regulatory client file comprises several categories of documents. The first category covers identification and identity verification, the second covers knowledge of the business relationship, the third covers contractual documents, and the fourth covers monitoring. Each document must be classified in the corresponding category to facilitate access and audits.