The EIB Group Compliance functions are responsible for identifying, assessing, advising on, monitoring and reporting on compliance risk, which is managed by the EIB Compliance function and by the EIF Compliance function for respective Compliance risks. Compliance risk is defined as the risk of legal or regulatory sanctions, material financial loss, or damage to reputation that a member of the EIB Group may suffer as a result of its failure to comply with all applicable laws, regulations, codes of conduct and standards of good practice. In particular, it is responsible for compliance policies, ethics standards, codes of conduct, anti-money laundering and combating the financing of terrorism standards and taxation-related controls through due diligence and on-going monitoring of EIB counterparts and operations. Furthermore, the Compliance Directorate is co-responsible for the identification, assessment, monitoring and reporting of non-financial risks.