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Compliance

kuhm-PLY-uns /kəmˈplaɪəns/

nounC1GREGMATTOEFLIELTS

FormalBusiness

The action or fact of complying with a wish or command. In a legal or regulatory context, it refers to conforming to rules, standards, or laws.

In finance and law, 'compliance' is critical. It's not just knowing the rules, but actively adhering to them to avoid penalties, legal issues, or reputational damage.

The story behind the word. The word 'compliance' comes from the Latin verb 'complere,' meaning 'to fill up' or 'to complete.' Imagine 'filling up' or 'completing' all the requirements and rules. This sense of fulfilling obligations is at the core of 'compliance,' especially in legal and regulatory contexts where one must 'complete' all necessary steps.

Word relationships

Adherence: Sticking to a rule, belief, or standard.
Conformity: Behavior in accordance with socially accepted conventions or standards.
Obedience: Compliance with an order, request, or law or submission to another's authority.

Non-compliance: Failure or refusal to comply.
Violation: An act of breaking or failing to observe a law, agreement, or code of conduct.
Disregard: The action or state of paying no attention to something.

Commonly confused with

Agreement: 'Agreement' is a mutual understanding or consent. 'Compliance' is the act of following rules or demands, which may or may not be based on prior agreement.

Word family

comply (verb): To act in accordance with a wish, command, or rule.
compliant (adjective): Meeting or in accordance with rules or standards.

Collocations

regulatory compliance
tax compliance
environmental compliance
compliance officer
achieve compliance
ensure compliance

Example sentences

"The company invested heavily in new software to ensure full compliance with the latest data protection regulations." Business operations.
"Tax compliance is a major focus for revenue agencies, which employ various methods to ensure taxpayers meet their obligations." Government oversight.

Memory hook

COMPLIANCE means you 'COM-PLETE' all the rules and regulations. COMPLIANCE = COM-PLETE

When not to use

Do not use 'compliance' for simply agreeing with someone. It implies adherence to established rules, regulations, or demands.

Fun facts

The word 'complement' (something that completes or makes perfect) also shares the same Latin root 'complere'.