Financial Sector Compliance

Definition ∞ Financial Sector Compliance refers to adherence by financial institutions to relevant laws, regulations, and ethical standards governing their operations. This includes rules related to anti-money laundering (AML), know-your-customer (KYC) protocols, data privacy, and market conduct. Its objective is to prevent financial crime, maintain market integrity, and protect consumers. Robust compliance frameworks are essential for maintaining trust and avoiding penalties.
Context ∞ News regularly covers Financial Sector Compliance in reports on regulatory actions, new legislation affecting digital assets, and efforts to combat illicit financing. Cryptocurrency exchanges and custodians face increasing scrutiny to meet these obligations. The evolving regulatory environment presents ongoing challenges for businesses operating with digital assets.