The declaration does not necessarily have to be sent to the regulator (EA or LA). When asked to confirm the distribution of this document, if the SQP ticks the box that says "Not sent", they will be asked to provide a reason. The 'Not sent' option is there because not all declarations are produced for planning - e.g. if they are prepared for mergers and acquisition etc.
CL:AIRE does retain all the data that is captured on the declaration, which would be available for auditing/disciplinary procedures.