Classify before calculating
Different AML records have different retention triggers. Classify the record before calculating its period.
Section 107 generally requires transaction records for seven years beginning on the day the record is made.
Section 108 covers documents given by or for the customer about a service or proposed service. The entity must have commenced that service.
It requires the document or a copy for seven years after it was given. Section 111 uses the relationship-end or completed occasional-transaction event.
Section 116 requires program records from creation until seven years after they are no longer relevant to compliance with Part 1A.
Source: Federal Register of Legislation: 107, 108, 111, 116, 118 and 119.
- Transaction record
Creation of the record.
- Customer document
Receipt of the document.
- CDD record
End of relationship or completion of occasional transaction.
- Program record
When no longer relevant to compliance.
Different records use different starting events
Parallel relative timelines show the general seven-year periods under sections 107, 108, 111 and 116. Each starts at its own event; they are not sequential stages. Program records must also be retained from creation while relevant. Apply each provision’s scope, section 118 exemptions and section 119 other duties before disposal. The endpoint is not permission to delete.
Transaction record: Record made; +7 years. Check exceptions and other duties before disposal. Customer document: Document given; +7 years. Check exceptions and other duties before disposal. CDD record: Relationship ends or occasional transaction completed; +7 years. Check exceptions and other duties before disposal. Program record: No longer relevant to compliance; +7 years. Check exceptions and other duties before disposal.
Build an event-based register
A useful retention register names the record category, applicable provision, trigger event and evidence of that event.
A customer can have several matters while the business relationship continues. Closing one file does not necessarily end that relationship.
If the event is uncertain, resolve it before setting a disposal date. The upload date does not replace a different statutory trigger.
Source: Federal Register of Legislation: 107, 108, 111, 116, 118 and 119.
Separate the record category from the folder name
One folder can contain transaction records, customer documents and CDD decisions. The folder name does not determine the legal category.
A program record can remain relevant after a new version replaces it. Section 116 concerns evidence of compliance with Part 1A.
Identify all applicable duties where one record serves several purposes.
Source: Federal Register of Legislation: 107, 108, 111, 116, 118 and 119.
Invented example: four records from the same matter
In this invented example, staff make a transaction record. The customer gives a related document later. The business relationship ends at a later point.
A program approval record remains relevant after a new policy version starts.
The transaction record and customer document use their respective creation and receipt events. The CDD period uses the stated relationship-end event.
The program record has no established final retention trigger yet. These facts do not produce one disposal date for the folder. Apply the separate seven-year periods described above.
Source: Federal Register of Legislation: 107, 108, 111, 116, 118 and 119.
- Identify the event
Use the event required for this record category.
- Event supported
Calculate the period and examine other duties before disposal.
- Event unresolved
Keep the uncertainty visible and obtain a supported retention decision.
An unknown retention trigger is not a deletion date
Practical disposal reviewpoint. A supported date is only one condition; it is not permission to delete.
Trigger date supported? Yes: Examine period and other duties. No: Resolve before disposal
Control the disposal decision
Before disposal, establish the category, trigger and any other duty to retain the record. Section 119 preserves other record obligations.
Section 118 contains exemptions, including a foreign-establishment exemption that does not cover every provision. Do not apply it to program records under section 116.
A practical disposal process can record the authority, review and result. Include relevant supplier records and backups in the review.
Source: Federal Register of Legislation: 107, 108, 111, 116, 118 and 119.
Treat mixed records carefully
One file can have several retention duties. Do not apply its shortest period to all the contents.
Determine what must remain before separating or deleting material. If the facts do not support a disposal decision, record the unresolved question.
Source: Federal Register of Legislation: 107, 108, 111, 116, 118 and 119.
Carry the evidence through a system move
When moving records to another system, preserve the trigger event and its evidence.
A migration date does not replace a relationship-end date or the date a document was given. Confirm that the exported records remain usable.
Source: Federal Register of Legislation: 107, 108, 111, 116, 118 and 119.