The European Securities and Markets Authority (ESMA) is an independent regulatory body responsible for overseeing financial markets across the European Union (EU). Its primary role is to ensure that markets function effectively, fairly, and transparently while protecting investors and promoting stability. ESMA regulates securities, derivatives, investment services, and more, working closely with national authorities to create a unified and stable financial framework within Europe. 

In financial crime compliance, ESMA plays a key role by enforcing rules that prevent market abuse, insider trading, and other financial crimes. It provides guidelines and standards to ensure that financial institutions implement robust compliance systems, including the monitoring of transactions and reporting of suspicious activities. By fostering transparency and accountability, ESMA helps protect the EU’s financial markets from being exploited for illicit activities like money laundering or terrorism financing.