What is required for the retention of employee training records?

The retention of employee training records for five years after the training is in compliance with various regulatory requirements, such as those stipulated by the Bank Secrecy Act (BSA) and other relevant financial regulations. Holding onto these records for this duration ensures that banks can demonstrate compliance in the event of an audit. It also provides a clear training history that can be crucial for evaluating employee performance and knowledge over time.

Keeping records for five years aligns with the general practice in the financial industry, offering a balance between adequate record-keeping for compliance and the practicalities of managing documentation. This period allows for enough time to capture any relevant audits or inquiries that may arise regarding the training and competency of employees within that timeframe.

In contrast, other timeframes mentioned, such as three years, two years after termination, or indefinite retention policies, may not meet the specific regulatory expectations for demonstrating compliance with ongoing training and employee competency in critical areas.