Section 79I: Risk-based approach

79I. Risk-based approach (1) The Registrar shall, in fulfilling his obligation to effectively supervise and monitor reporting persons, use a risk-based approach. (2) The Registrar shall, in applying a risk-based approach to supervision, ensure that he – (a) has a clear understanding of the risks of money laundering, terrorist financing and proliferation financing at national level; (b) has an on-site and off-site access to all relevant information on the specific domestic and international risks associated with customers, products and services of the credit union he supervises; and (c) bases the frequency and intensity of on-site and off-site supervision on – (i) the money laundering, terrorist financing and proliferation financing risks, and the policies internal controls and procedures associated with the business activities of the credit union, as identified by the Registrar’s assessment of its risk profile; (ii) the risks of money laundering, terrorist financing and proliferation financing in Mauritius as identified within any information that is made available to the Registrar; and (iii) the characteristics of the credit union, in particular the diversity and number of such institutions and the degree of discretion allowed to a credit union under the risk-based approach. (3) The assessment by the Registrar of the money laundering, terrorist financing and proliferation financing risk profile of a credit union, including the risks of non-compliance, shall be reviewed both periodically and when there are major events or developments in their management and operations.