Delisting refers to the removal of a company’s shares from a stock exchange, either voluntarily or involuntarily. When a company is delisted, its stock is no longer publicly traded, which can happen due to failing to meet the exchange’s financial or regulatory requirements, mergers, or strategic business decisions. Involuntary delisting may occur if the company engages in illegal activities, fails to file financial reports, or becomes financially unstable. 

In the financial crime compliance space, delisting can be a result of regulatory actions linked to fraud, sanctions violations, or other financial crimes. For compliance professionals, monitoring companies that are at risk of delisting or have been delisted is important, as this can signal potential risks, such as involvement in suspicious activities. Companies tied to delisting may warrant closer scrutiny during customer due diligence processes, particularly when investigating financial crime risks or ensuring sanctions compliance.