Governance refers to the framework of rules, practices, and processes by which an organisation is directed and controlled. It involves decision-making, accountability, risk management, and ensuring that an organisation adheres to legal and ethical standards. Good governance is essential for maintaining trust and transparency, ensuring that an institution operates efficiently and responsibly. 

In the context of anti-money laundering (AML) and financial crime compliance, governance plays a vital role in establishing strong oversight and control mechanisms. Effective governance ensures that financial institutions have appropriate policies, procedures, and compliance structures in place to detect, prevent, and report financial crimes such as money laundering or fraud. It includes setting up clear roles and responsibilities, ensuring regulatory adherence, and maintaining internal audits. Strong governance in AML helps mitigate compliance risk, protect an institution’s reputation, and ensure its operations are aligned with both legal requirements and ethical standards.