RECORD KEEPING BY FUND ADMINISTRATORS IN THE NETHERLANDS ANTILLES
A document retention policy should be in place
Administrators and self-administered investment institutions should have policies in place or take such measures as may be needed to prevent the misuse of technological developments in money laundering or terrorist financing schemes. They should also have policies and procedures in place to address any specific risks associated with non-face to face business relationships or transactions. These policies and procedures should apply when establishing customer relationships and when conducting ongoing due diligence.
Administrators and self-administered investment institutions should ensure compliance with the record keeping requirements contained in the relevant Netherlands Antilles money laundering and terrorist financing legislation. The investigating authorities need to ensure a satisfactory audit trail for suspected transactions related to money laundering and terrorist financing.
Where appropriate, administrators should consider retaining certain records e.g. customer identification, account files, and business correspondence, for periods which may exceed that required under the relevant money laundering and terrorist financing legislation, rules and regulations.
A document retention policy must weigh the statutory requirements and the needs of the investigating authorities against normal commercial considerations. However, when practicable, the following document retention terms are suggested:
- All necessary records on transactions should be maintained for at least five years after the transaction took place. Such records must be sufficient to permit reconstruction of individual transactions (including the amounts, currencies, and type of transaction involved) so as to provide, if necessary, evidence for prosecution of criminal behavior.
- Records on customer identification (e.g. copies or records of official identification documents like passports, identity cards, driving licenses or similar documents), account files and business correspondence should be kept for at least five years after the business relationship has been discontinued.
In situations where the records relate to on-going investigations or transactions which have been the subject of disclosure, they should be retained until it is confirmed by the investigating or law enforcement authority that the case has been closed.
Karel Frielink
Attorney (lawyer) / Partner
