Requirements for Supporting Documentation

AC

According to the Financial Action Task Force (FATF), there are two important requirements that should be followed with respect to supporting documentation that is used to identify potentially suspicious activity:

1. Retention of the documentation: The first requirement is that the supporting documentation must be retained for a specified period. This is important because if the activity is later determined to be suspicious, the documentation can be used as evidence in an investigation. The two options given in the question are:

A. It must be retained for at least five years B. It must be retained for at least seven years

Option A and B are both similar, as both require retention of the documentation for a certain period of time. However, the correct answer to this question is A, which specifies a retention period of at least five years. It is important to note that some jurisdictions may require longer retention periods, so it is important to check local regulations to ensure compliance.

2. Accessibility of the documentation: The second requirement is that the supporting documentation must be kept in a manner so that it can be provided promptly. This means that the documentation should be organized and easily accessible so that it can be quickly retrieved if needed. The option given in the question is:

C. It must be kept in a manner so that it can be provided promptly

Option C is the correct answer to this question. Keeping documentation organized and easily accessible is essential for efficient and effective investigations. This also ensures that investigators can quickly identify patterns of suspicious activity and take appropriate action.

Regarding the fourth option, D - "It must only be released to the government through a subpoena process" - it is not a requirement specified by the FATF. However, it is important to note that the release of documentation should be done in accordance with local laws and regulations, and that the privacy of individuals should be protected as much as possible.