Question

Under the PMLA, the records of transactions maintained by reporting entities must be preserved for a period of how many years after the transaction?

Q: Answer-Under the PMLA, the records of transactions maintained by reporting entities must be preserved for a...

Under the Prevention of Money Laundering Act and the rules made thereunder, reporting entities are required to maintain records of transactions and of the identity of their clients for a period of five years from the date of the transaction or from the date of cessation of the business relationship, as applicable. The preservation of records for this period supports investigation and prosecution of money laundering. It ensures that relevant financial information remains available to the authorities when required.