We had a chat on ‘A Dictionary of Finance’ podcast with Branimir Berkovic, head of the tax compliance unit, and Sophie Rase, compliance officer in corporate compliance at the European Investment Bank to find out what compliance encompasses in the industry. And we learned that: Compliance ensures the organization follows rules and regulations, set both externally (for example, by lawmakers) and internally (for example, by shareholders). Sophie and Branimir explain that compliance involves monitoring and following rules in relation to: • tax evasion • money laundering • financing of terrorism • corruption and more. We find out what politically exposed people are. And we find out about BEPS (Base Erosion and Profit Shifting). Sophie tells us that compliance is a process-driven discipline, which works by creating and monitoring different policies, such as a system for whistleblowing. She also explains the three lines of defence in the context of a bank.