Definition:
Record-keeping obligations refer to the legal requirement for financial institutions, PSPs, and MSBs to maintain accurate transaction records for compliance and audit purposes.

Contextual Explanation:
In Canada, record-keeping requirements are mandated under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and enforced by FINTRAC. Businesses must retain transaction records, customer identification documents, and compliance reports for a specified period.

Why It Matters:
Maintaining proper records helps organizations demonstrate regulatory compliance, support investigations, and detect potential financial crimes. Failure to comply with record-keeping obligations can result in regulatory penalties.

Example:
A PSP processing cross-border payments must keep records of all transactions exceeding CAD 10,000 for at least five years, as required by FINTRAC regulations.