57. Supervisory strategies should include an approach for the application of the supervisory tools on a graduated basis across the spectrum of supervised entities/sectors, with the nature, frequency, intensity and focus being determined in accordance with the level of ML/TF risk (see Sections 3.3, 3.4 and Annex A. Overview of supervisory tools).

58. The supervisory strategy should articulate the rationale for the approaches to the application of each of the specific supervisory tools in accordance with the ML/TF risk ratings assigned to the sector or specific entity (i.e., details of the purpose of the tools in terms of the outcome to be achieved and also the reasons for the regularity of their application). As the FATF standards focus on outcomes rather than process, it is important for supervisors to consider whether their activities contribute to supervisory outcomes (i.e. AML/CFT risk identification / risk mitigation) rather just the form or quantity of those interventions.