Module: General Practice
Q64: Under the Prevention of Money Laundering Act (PMLA), 2002, and RBI’s Master Direction on KYC, what is the mandatory preservation period for records of transactions and identity (KYC) documents maintained by an Authorized Person?
✅ Correct Answer: B
1. The Rule: All Authorized Persons (APs) are "Reporting Entities" under PMLA.
They must preserve records of: Transactions: For at least 5 years from the date of the transaction.
Identity (KYC): For at least 5 years from the date of cessation of the business relationship (e.g., closing the account). 2. Harmonization: Earlier, some banking regulations required 8 years, but the PMLA amendment harmonized this to 5 years to align with global FATF standards.
3. Scope: This applies to all vouchers, ledgers, and identification documents (Passport copies/PAN).
They must preserve records of: Transactions: For at least 5 years from the date of the transaction.
Identity (KYC): For at least 5 years from the date of cessation of the business relationship (e.g., closing the account). 2. Harmonization: Earlier, some banking regulations required 8 years, but the PMLA amendment harmonized this to 5 years to align with global FATF standards.
3. Scope: This applies to all vouchers, ledgers, and identification documents (Passport copies/PAN).