98. Many regulated entities routinely operate across national borders and may therefore be subject to AML/CFT supervision by several supervisory authorities in multiple jurisdictions. The ML/TF risks in question are frequently cross-border in nature, and systems and control failings in one part of the group can be replicated elsewhere. Taking a risk-based approach to supervision requires international cooperation, particularly in relation to groups operating across multiple jurisdictions. Co-operation between supervisors is important to mitigate those risks and is covered under Recommendation 40 [Interpretative Note to Recommendation 40, paragraphs 10-13.].

99. International co-operation increases the effectiveness of the risk-based approach by:

• Enhancing risk understanding - including understanding the group's attitudes and understanding of risks. Broader information on risks could also be shared to increase awareness among supervisors of emerging risks or to develop a common understanding of risks associated with particular types of initiatives, sectors or activities (for example, sharing risks associated with MVTS corridors for financial inclusion purposes). Sharing risk and controls assessments among supervisors would strengthen their collective understanding of the group's risk profile, and its impact on their respective regulated entities.