Broadly speaking, compliance encompasses the process of adhering to laws, regulations, standards and ethical practices that govern an organization’s operations. It ensures that businesses and institutions operate within the legal and regulatory framework applicable to their industry and jurisdiction. 

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From a Know Your Customer (KYC) and Due Diligence (DD) perspective, compliance involves implementing and enforcing policies and procedures to prevent activities such as money laundering, fraud, terrorism financing and other financial crimes. 

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Outside of KYC and DD, compliance can also extend to other corporate governance obligations - such as environmental, social and governance (ESG) standards - as well as ethics and workplace safety regulations.

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Organizations achieve compliance through a combination of measures, including regular training for employees, internal audits, robust monitoring systems and maintaining transparent reporting channels. A compliance officer or team is often designated to oversee these efforts - ensuring that the organization remains up to date with evolving laws and regulations.