MLR3C4100 - Our risk based approach to supervision: Overall objectives of the risk based approach
The objectives of a risk-based approach are to prevent money laundering and terrorist funding activity occurring through a combination of:
- Deterrence by applying appropriate customer due diligence measures
- Detection as a result of monitoring transactions and reporting suspicious activity to SOCA; and
- Record-keeping that will enable investigations into money laundering or terrorist financing to be carried out.