Risk-based approach to supervision. Supervisory activities focus on areas that pose highest risks.
- Risk assessment of financial institutions and sectors under its supervision
- Type of customers
- Products
- Services
- Transactions
- Geographic locations
- AML/CFT framework
- Reputation of the institution
- Size
- Complexity
- Resources
- Develop a tailored supervisory plan considering:
- Risks posed by the financial institutions and sectors.
- Frequency and scope of supervisory activities
- Tools and techniques to use
- Customer due diligence
- Transaction monitoring
- Suspicious activity reporting
- Collaboration with other authorities:
- Prudential supervisors
- AML/CFT supervisors in other jurisdictions
- Law enforcement agencies
- Financial intelligence units
