2.2.1. Assessing inherent risks

35.Inherent risks are ML/TF risks intrinsic to a sector or an entity's business activities before any AML/CFT controls are applied. Inherent risks are associated with features of a business (including their nature, scale and complexity) or characteristics of their business activities with respect to customers, products and services, geographic regions and delivery channels. Certain features or characteristics pose higher or lower risks than others. INR [See Section 6.12 for a list of additional resources.]. provides some examples of possible higherand lower-risk factors (see paragraphs 15-17) and the FATF's range of sectoral RBA Guidance 10 and typologies reports can help guide supervisors' assessment of inherent risks of a certain sector or entity.

36. Supervisors should allocate adequate resources to ensure a good understanding of the inherent risks of the regulated entities, leveraging their own knowledge of the business activities of the sector or through engagement with experts in those fields.