Financial compliance refers to the adherence to laws, regulations, and standards that govern financial practices within an organization. This includes following guidelines set by regulatory bodies such as the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Compliance ensures that companies operate transparently and ethically, protecting investors and maintaining market integrity. Organizations implement various policies and procedures to achieve financial compliance, including regular audits, risk assessments, and employee training. By ensuring compliance, businesses can avoid legal penalties, enhance their reputation, and foster trust among stakeholders, including customers, investors, and regulators.