What types of information must firms store for anti-money laundering purposes?

The correct choice emphasizes the essential elements that firms are required to maintain for anti-money laundering (AML) compliance. Identification data, transaction records, and customer due diligence information are critical components of a firm's AML framework.

Identification data encompasses the details needed to verify the identity of customers, including names, addresses, and other identifying information, which is crucial for preventing money laundering activities. Transaction records provide insight into the financial activities of customers, allowing firms to monitor for unusual or suspicious transactions that may indicate illegal activity. Customer due diligence (CDD) refers to the ongoing process of verifying customer identities and understanding their financial behavior, which is fundamental in assessing risk levels associated with specific clients or transactions.

In the context of AML, having this information allows firms to conduct proper risk assessments, report suspicious activities to authorities, and adhere to regulatory requirements aimed at combating financial crimes. The focus of AML regulations is primarily on activities that could facilitate money laundering and funding of terrorism, and thus this specific type of information is paramount for those objectives.

The other options, while potentially relevant in their respective contexts, do not align with the specific requirements of AML practices. Financial forecasts and projections, employee records, performance appraisals, market analysis, and competitive intelligence are not directly tied to identifying or