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Anti-Money Laundering - A set of procedures, laws or regulations designed to stop the practice of generating income through illegal actions. Its importance lies in reducing the risk of financial institutions being used to facilitate criminal activities.

Know Your Customer - The process of a business verifying the identity of its clients and assessing their suitability, along with the potential risks of illegal intentions towards the business relationship. It is important for preventing identity theft, financial fraud, money laundering and terrorist financing.

A law passed in 2002 that established sweeping auditing and financial regulations for public companies. Its importance is to protect investors by improving the accuracy and reliability of corporate disclosures.

General Data Protection Regulation - A regulation in EU law on data protection and privacy in the European Union and the European Economic Area. It also addresses the transfer of personal data outside the EU and EEA. It is important because it gives control to individuals over their personal data and simplifies the regulatory environment for international business.

The threat posed to a company's financial, organizational, or reputational standing resulting from violations of laws, regulations, codes of conduct, or organizational standards of practice. The importance lies in its potential to lead to legal penalties, financial forfeiture, and material loss.

California Consumer Privacy Act - A state statute intended to enhance privacy rights and consumer protection for residents of California, United States. It is important because it gives consumers more control over the personal information that businesses collect about them.

Regulatory Technology - The management of regulatory processes within the financial industry through technology. It includes regulatory monitoring, reporting, and compliance. The importance of Regtech lies in its ability to enhance transparency, consistency, and standardization across the regulatory processes.

Markets in Financial Instruments Directive II - A legislative framework instituted by the European Union to regulate financial markets in the EU and improve protections for investors. It is significant as it provides greater transparency across the financial markets and standardizes the regulatory disclosures required for particular markets and investments.

Foreign Account Tax Compliance Act - A 2010 United States federal law requiring all non-U.S. foreign financial institutions and certain other non-financial foreign entities to report the foreign assets held by their U.S. account holders for tax purposes. The importance of FATCA is in combating tax evasion by U.S. residents using foreign accounts.

A set of recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision. They are important because they aim to strengthen the regulation, supervision, and risk management within the banking sector globally.

Payment Card Industry Data Security Standard - A set of security standards designed to ensure that all companies that accept, process, store or transmit credit card information maintain a secure environment. It is important due to its role in the protection of credit card data and the prevention of payment card fraud.

Sarbanes-Oxley Compliance - Compliance with the requirements of the Sarbanes-Oxley Act, primarily around financial reporting and auditing procedures. SOX Compliance is important for maintaining public confidence in the financial reporting of public companies.

Safeguards provided to individuals who report violations of laws, rules, and regulations, such as fraud, to the government or overseeing authorities. These protections are important as they encourage the reporting of misconduct without fear of retaliation.

Any nonpublic information that could influence an investor's decision to buy or sell securities that has not been made available to the public. It is important because trading on such information is considered insider trading, which is illegal and subject to severe penalties.

A comprehensive review of an organization's adherence to regulatory guidelines. The audit's importance lies in its role in verifying that the organization meets legal and regulatory standards, which can prevent fines and penalties.

An intergovernmental organization that designs and promotes policies and standards to combat financial crime. The importance of FATF lies in its role in the fight against money laundering, terrorist financing, and other related threats to the integrity of the international financial system.

The buying or selling of a security by someone who has access to material, nonpublic information about the security. Its importance lies in the fact that it is illegal and a breach of fiduciary duty or other relationship of trust and confidence.

The process of identifying and analyzing potential issues that could negatively impact key business initiatives or critical projects in order to help organizations avoid or mitigate those risks. Its importance lies in enabling proactive management and reduction of potential vulnerabilities.

A U.S. law requiring financial institutions to assist government agencies in detecting and preventing money laundering. BSA is important because it helps maintain the integrity of the financial system by requiring reports of certain transactions that might signify criminal activity.

A form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions, and guidelines, aiming to maintain the integrity of the financial system. This regulation is important because it is supposed to decrease financial crimes and protect members of the institution.

An investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or a transaction with another party. This process is important because it can identify potential risks and liabilities associated with a business transaction.

Educational programs focused on teaching employees the legal and regulatory requirements they must adhere to as part of their job. Compliance training is important for ensuring that company operations remain within the bounds of the law and for preventing violations that could lead to penalties.

A document that outlines a set of acceptable behaviors for a professional or social group; generally, it is agreed upon by all members of the group. Ethics codes are important because they are designed to help professionals conduct business honestly and with integrity.

The goal that organizations aspire to achieve in their efforts to ensure that they are aware of and take steps to comply with relevant laws, policies, and regulations. Regulatory compliance is important due to its role in preventing fines and avoiding legal penalties.

Refers to the auditing and regulatory standards set forth by the Bank Secrecy Act and Anti-Money Laundering laws that financial institutions and other regulated entities are required to follow. It is important for preventing money laundering and financial crimes.

The system of rules, practices, and processes by which a firm is directed and controlled. Corporate governance is important because it provides a framework for attaining a company's objectives, and it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure.

A type of credit score that makes up a substantial portion of the credit report that lenders use to assess an applicant's credit risk and determine whether to extend a loan. The FiCO Score's importance lies in its use as a standard gauge of creditworthiness in the United States.

An employee whose responsibilities include ensuring their company complies with its outside regulatory requirements and internal policies. A compliance officer's role is important because they help organizations manage risk, maintain a positive reputation, and avoid legal penalties.

A regulatory agency charged with overseeing financial products and services that are offered to consumers. The CFPB is important because it helps protect consumers from unfair, deceptive, or abusive practices and takes action against companies that break the law.

A comprehensive piece of financial reform legislation enacted in 2010 in response to the financial crisis of 2008. Its importance arises from its goal to decrease various risks in the financial system, including through the creation of new government agencies, such as the CFPB and FSOC.