The Procurement Glossary » Regulatory Compliance

Regulatory Compliance

Compliance & Risk

Definition

Adherence to the laws and regulations that apply to buying, importing and operating in a given market.

Explanation

Procurement must comply with tax, trade, environmental, labour and sector-specific rules — from e-invoicing mandates to import controls. Non-compliance risks fines, delays and reputational damage, so requirements are built into processes.

Example

New e-invoicing regulation requires structured invoices, so the team updates its AP process to comply.

Related terms

• Procurement Compliance — Adherence to the policies, contracts, laws and controls that govern how an organisation buys.
• Sanctions Screening — Checking suppliers and their owners against government sanctions and watchlists before and during engagement.
• Customs Duty — A tax levied by a government on goods imported across its borders.
• Data Protection — Safeguarding personal and sensitive data handled in procurement, in line with privacy laws.

Frequently Asked Questions

What is Regulatory Compliance?

Adherence to the laws and regulations that apply to buying, importing and operating in a given market. Procurement must comply with tax, trade, environmental, labour and sector-specific rules — from e-invoicing mandates to import controls. Non-compliance risks fines, delays and reputational damage, so requirements are built into processes.

Can you give an example of Regulatory Compliance?

New e-invoicing regulation requires structured invoices, so the team updates its AP process to comply.

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