This non-binding Guidance aims to provide clarity on how supervisors should implement a risk-based approach aligned with FATF Standards, offering insights into both current practices and future innovations to enhance AML/CFT supervision effectiveness. It outlines the general process for supervisors to allocate resources and employ risk-appropriate tools based on their risk assessment. While it acknowledges differences in supervising the financial sector compared to other sectors, it doesn't delve into sector-specific risks, complementing FATF's sector-specific guidance documents. The Guidance refrains from advocating a specific institutional framework, recognizing that approaches should be tailored to each jurisdiction's context, considering factors like regulatory frameworks and the magnitude of ML/TF risks. Any examples provided are for illustration purposes and do not signify FATF endorsement of a particular system's effectiveness.