83. R.35 requires jurisdictions to have a range of effective, proportionate and dissuasive sanctions, whether criminal, civil or administrative, available to deal with natural or legal persons that fail to comply with AML/CFT requirements. The FATF Guidance on Effective Supervision and Enforcement is a comprehensive guide on remedial actions and sanctions. This section focuses on links between taking a risk-based approach to supervision and applying remedial actions and sanctions.

84. Supervisory authorities should have access to a range of remedial actions and sanctions that can be applied based on the level and nature of identified deficiencies or gaps in the regulated entity's AML/CFT controls and risk management system. This range could include warnings, action letters, orders, agreements, administrative sanctions, penalties and fines and other restrictions and conditions on an entity's activities that may be progressive in severity, requiring entities to remedy AML/CFT deficiencies and any breach of AML/CFT obligations or failure to mitigate risks in a timely manner.

85. In assessing the appropriate remedial actions or sanctions to apply in a risk-based supervision approach, supervisors should consider the following:

• the nature of findings - deficiencies in relation to higher risk areas, including those identified in a national, sectoral or supervisory risk assessment, could be prioritised for remedial action or sanctions as appropriate