A regulatory agency is a government or independent body responsible for overseeing and enforcing laws and regulations within a specific industry or sector. These agencies establish rules, monitor compliance, and take enforcement actions to ensure that organisations operate within legal and regulatory frameworks. 

In the financial crime compliance space, regulatory agencies play a crucial role in maintaining the integrity of the financial system: agencies such as the Financial Conduct Authority (FCA) in the UK, the Office of Foreign Assets Control (OFAC) in the US, and others set standards for Anti-Money Laundering (AML), Counter-Terrorist Financing (CTF), and other financial crime prevention measures. They conduct audits, investigate breaches, and impose penalties on institutions that fail to comply with regulations. Effective regulatory oversight helps prevent financial crimes, protect consumers, and ensure a stable and transparent financial environment.