National Risk Assessment (NRA). Supervisors should know the ML/TF/PF risks of their country. Where higher risks are identified in a country, supervisors should ensure, to the extent relevant for their task, that their AML/CFT supervisory framework addresses these risks.
Sectoral Risk Assessments (SRA) provide a deeper understanding of the unique ML/TF/PF risks associated with a sector, allowing for the use of targeted risk mitigation measures and regulatory actions across a sector. Supervisory authorities are natural candidates to lead the SRA exercise. The starting point for the development of an SRA is the collection of relevant information about the sector, its participants, and its characteristics. This includes understanding the types of products and services offered, customer profiles, transaction patterns. Subsequently, ML/TF/PF threats specific to the sector are identified as well as the vulnerabilities specific to the sector.
