3  The results of the risk-based supervision model determine the frequency and depth of supervisory monitoring. The surveillance is proportionate to the risk profile of financial institutions.
As such, more intense and frequent supervisory reviews are conducted for institutions deemed as presenting higher risks The implementation of a risk-based approach should assist regulated entities in strengthening their institutional risk assessment, which is mandatory in terms of the FIAMLA. Furthermore, the adoption of this approach will create, both for supervisors and regulated entities, a convergence towards a common understanding of ML/TF risks.