242. The MVTS sector encompasses a wide variety of players. Some MVTS providers are specialised in money transfer in specific geographic areas with limited outlet locations and operate only in one or two jurisdictions while others have a global footprint and transfer funds internationally to a large number of geographic areas (or "corridors") using very dense networks of agents. These two broad categories of MVTS providers often use the same agents (such as grocery stores, internet cafés, bureaux de change, etc.) who offer the services of several MVTS.

243. MVTS are a powerful enabler of financial inclusion in many developing countries. In many jurisdictions, either the whole sector or a sub-sector of MVTS providers are considered to be exposed to significant ML/FT risks. These risks need to be frequently (re) assessed and carefully monitored. Such assessment and monitoring should be conducted both at the sectoral and entity levels, in order to develop a sharp and accurate understanding of the threats and vulnerabilities. Supervisory authorities need to ensure a risk-based approach to mitigate against financial exclusion or unauthorised MVTS activities that will increase the ML/TF risks in the jurisdiction. For further information, see FATF Guidance for a risk-based approach to MVTS.

244. The FATF Guidance for a risk-based approach to MVTS includes various examples of how strategic analysis and off-site supervision can assist in implementing risk-based supervision of the MVTS sector: