The Joint Committee of the ESAs has published its final guidelines on risk-based supervision under MLD4. The guidelines aim to provide a common EU basis for the application of the risk-based approach to AML and CTF supervision set out in both MLD4 and the FATF standards and will apply a year from the date they are issued. The guidelines define the characteristics of a risk-based approach to AML and CTF supervisions and specifically require national competent authorities to identify and assess the money laundering and terrorist financing risk to which their sector is exposed and adjust the focus, intensity and frequency of supervisory actions in line with the risk-based approach.