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Corporation Requirements: Keeping Accurate Account Records

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In order to comply with regulatory requirements, corporations are mandated to maintain accurate and detailed records related to their accounts. These records serve as evidence of account transactions, client information, and business activities.

Signature Cards

Corporations must keep a signature card for every person authorized to give instructions on an account. The record can include the individual’s handwritten signature or electronic signature created or adopted by them.

  • Retention: At least five years from the date the account was closed.

Intended Use of Account

Companies are required to maintain records detailing the intended use of each account. This information includes, but is not limited to:

  • General chequing services

  • Saving for large purchases or retirement

  • Receiving directly deposited employment or other income

  • Retention: At least five years from the date the account was closed.

Credit Arrangement Records

Corporations must keep records of credit arrangements with clients, including information such as:

  • Client financial capacity

  • Terms of the credit arrangement

  • Nature of the client’s principal business or occupation

  • Retention: At least five years from the date the account was closed.

Other Account Records

Additional records that corporations must maintain include:

  • Credit card applications and statements

  • Foreign currency exchange transaction tickets

  • VC exchange transaction tickets

  • Records of international EFT transactions exceeding $1,000

  • Retention: Varies depending on the type of record and the specific requirements outlined in this article.

Consequences of Non-Compliance

Failure to maintain accurate and detailed account records can result in serious consequences, including fines and penalties. It is essential for corporations to prioritize record-keeping as part of their compliance efforts.

Best Practices

To ensure compliance with regulatory requirements, corporations should:

  • Develop a comprehensive record-keeping policy
  • Designate a specific person or department responsible for maintaining records
  • Regularly review and update records to ensure accuracy and completeness

By following these best practices, corporations can minimize the risk of non-compliance and maintain accurate records that support their business activities.