Compliance

Compliance is a key level of financial oversight and regulation in finance, banking, and investing.

These measures refer to rules or orders set down by a government regulator or independent authority to help police financial service or processing of transactions.

Finance is governed by a set of established guidelines or specifications. Regulated markets all adhere to some authority, which have evolved over time.

Compliance can also capture efforts aimed at ensuring organizations are abiding by both industry regulations and government legislation.

Why Compliance Matters

Compliance should be seen as a safeguard of checks and balances that can help prevent or mitigate fraud and other market inefficiencies.

This form of regulation or oversight also ensures cooperation with financial regulations.

The paramount goal of these being the protection of the public and provision of needed information to governmental agencies to stop fraud, money laundering, and terrorist funding.

Compliance takes center stage in the financial industry, offering stability to the markets and serves to protect customers, workers, and taxpayers from ethical threats.

One way this is accomplished is the obligatory tracking and storage of compliance data.

This includes all data that is relevant or belongs to a company, brokerage, etc. that can be used for the purpose of implementing or validating compliance or regulatory reporting.

Following evolving regulations and the importance of compliance in established markets, the use of advanced software is increasingly being implemented to help companies manage their data more efficiently.

In recent years this has included more advanced calculations, data transfers, and audit trails.

While finance is a globally unified concept, compliance is not. As a result, compliance varies across both industries and jurisdictions.

As an example, the financial regulatory structures of one country may be lacking or different in another.

Overall, the most tightly regulated jurisdictions in terms of compliance in the forex industry include the United States, United Kingdom or most European Union countries, Australia, New Zealand, Canada, among others.