Question

A broker-dealer must maintain records of the methods used to verify a customer's identity for:

A) 2 years
B) 3 years
C) 5 years
D) 7 years

Answer 1

A broker-dealer must maintain records of the methods used to verify a customer's identity for 5 years in compliance with the USA PATRIOT Act.

Step-by-step explanation:

The broker-dealer is required by the USA PATRIOT Act to maintain records of the methods used to verify a customer's identity. The correct answer to how long a broker-dealer must maintain these records is C) 5 years. This is part of the Customer Identification Program (CIP) requirements intended to assist the government in the fight against money laundering and terrorist financing.