ते ह्यस्य मर्मज्ञभयान्नापराध्यन्ति इति ॥ कZ_०१.८.०६ ॥
te hy asya marmajñabhayān nāparādhyanti iti
For they, fearing that he knows their weak points (secrets), do not offend (transgress against) him—so it is said.
It is deterrence produced by informational asymmetry: subordinates refrain from wrongdoing because the ruler knows compromising details about them.