The aim of this research is to identify the state of awareness in relation to laws and regulations related to the requirement of recordkeeping among financial institutions in Malaysia. Only 3 out of 250 companies listed on the Kuala Lumpur Stock Exchange (KLSE) have been identified adopting record management, a study in 1999 revealed. Why does this situation occur? It is the objectives of this study to identify whether selected financial institutions in Malaysia are aware of the existing laws and regulations related to the requirement of recordkeeping. If they do aware, why records management practice is not given high priority? How do these financial institutions prepare themselves for audit inspection by the Bank Negara Malaysia (BNM)? This study also seeks to identify the risk for not complying with the relevant laws. Method adopted is a survey with questionnaire and interview as mean to collect data. 10 financial institutions were involved as respondents for the survey. Both quantitative and qualitative data are analyzed using Statistical Package for the Social Sciences (SPSS). Finding shows that financial institutions in Malaysia are aware of the laws relevant to the requirement of recordkeeping.