A Regulatory Framework is a structured set of legal, regulatory and procedural guidelines that govern the operations, behavior and standards within a specific industry or sector. Typically, this is designed by regulatory authorities such as government agencies or industry bodies to ensure compliance, protect public interest and promote transparency, fairness and accountability within the regulated environment.

Within the financial services sector, a regulatory framework outlines the obligations and requirements that institutions must follow, covering areas like Anti-Money Laundering (AML), Counter Terrorist Financing (CTF) and data privacy, and it often includes a combination of laws, regulations, guidelines and standards that specify how institutions should conduct their business, manage risks and report information to regulatory authorities.

A Regulatory Framework serves as a safeguard, helping institutions prevent illegal activities, manage risks effectively and build trust with stakeholders. It also provides a reference point for enforcement actions - setting clear consequences for non-compliance and fostering stability within the industry or sector it governs.

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