Application of RBA in Supervision -FATF
Supervisors play a crucial role in preventing money laundering and terrorist financing. They ensure banks, other financial institutions, virtual asset service providers, accountants, real estate agents, dealers in precious metals and stones, and other designated non-financial business and professions, understand the risks facing their business and how to mitigate them. Effective supervisors also ensure that these businesses comply with their anti-money laundering and counter-terrorist financing obligations and take appropriate action if they fail to do so. FATF encourages countries to move beyond a tick-box approach in monitoring the private sector’s efforts to curb money laundering and terrorist financing. This report helps supervisors address the full spectrum of risks and focus resources where the risks are highest. A risk-based approach is less burdensome on lower risk sectors or activities , which is critical for maintaining or increasing financial i...