The FATF, through its FATF Recommendations has recognized the principle of a risk-based approach (RBA) to combating money laundering / terrorist financing (ML/TF).

In the past few years, the FATF has extensively discussed the issue of the risk-based approach (RBA) with the private sector. The FATF Recommendations contain language that permits countries to some degree to adopt a risk-based approach to combating money laundering and terrorist financing. That language also allows countries to permit financial professions and designated non-financial businesses and professions to use a risk-based approach in applying certain of their AML and CFT obligations. To deal with this issue and develop further guidance for public authorities and for the industry, the FATF created several electronic advisory groups on the risk-based approach as tools to facilitate dialogue among the interested parties. The first electronic advisory group was set up in March 2006 and included both public and private sector participants.

Since June 2007, in order to assist both public authorities and the private sector in applying a risk-based approach, the FATF has adopted a series of guidance in co-operation with relevant sectors.