Article 40Risk-based supervision

1. Member States shall ensure that supervisors apply a risk-based approach to supervision. To that end, Member States shall ensure that they:

(a)

have a clear understanding of the risks of money laundering and terrorist financing present in their Member State;

(b)

assess all relevant information on the specific domestic and international risks associated with customers, products and services of the obliged entities;

(c)

base the frequency and intensity of on-site, off-site and thematic supervision on the risk profile of obliged entities, and on the risks of money laundering and terrorist financing in that Member State.

For the purposes of point (c) of the first subparagraph of this paragraph, supervisors shall draw up annual supervisory programmes, which shall take into account the timing and resources needed to react promptly in the event of objective and significant indications of breaches of Regulations (EU) 2024/1624 and (EU) 2023/1113.

2. By 10 July 2026, AMLA shall develop draft regulatory technical standards and submit them to the Commission for adoption. Those draft regulatory technical standards shall set out the benchmarks and a methodology for assessing and classifying the inherent and residual risk profile of obliged entities, as well as the frequency at which such risk profile shall be reviewed. Such frequency shall take into account any major events or developments in the management and operations of the obliged entity, as well as the nature and size of the business.

Power is delegated to the Commission to supplement this Directive by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 49 to 52 of Regulation (EU) 2024/1620.

3. By 10 July 2028, AMLA shall issue guidelines addressed to supervisors on:

(a)

the characteristics of a risk-based approach to supervision;

(b)

The article continues in the official text.