4. The objective of this non-binding Guidance is to clarify and explain how supervisors should apply a risk-based approach to their activities in line with the FATF Standards. In addition to explaining common expectations, the Guidance is also forward looking and identifies innovative practices that can help improve the effectiveness of AML/CFT supervision and thus the overall AML/CFT system.

5. This Guidance focuses on the general process by which a supervisor, according to its understanding of risks, should allocate its resources and adopt risk-appropriate tools to achieve effective AML/CFT supervision. While the Guidance identifies some of the specificities in supervising the financial sector vis-à-vis other sectors, it does not seek to identify or address sectoral risks. This guidance complements the sector-specific guidance in the FATF's sector specific risk-based approach guidance documents [Guidance on the following sectors is available on the FATF website: Legal professionals (2019), Accountants (2019), Trust and Company Service Providers (2019), Securities (2018), Life Insurance (2018), Money or Value Transfer Services (2016), Virtual Currencies (2015), Banking Sector (2014), Prepaid cards, Mobile Payments and Internet-Based Payment Services (2013), Casinos (2008), Dealers in Precious Metals and Stones (2008), Real Estate Agents (2008). See Section 6.12 for a list of resources.].