What does the term "sanctions" mean in compliance?

The term "sanctions" in compliance refers specifically to penalties or restrictions imposed by regulatory authorities or governing bodies to enforce compliance with laws, regulations, or policies. These sanctions can be financial penalties, restrictions on operations, or various other forms of punishment aimed at entities or individuals that engage in non-compliance or illegal activities. The purpose of sanctions is to deter misconduct and ensure accountability, reinforcing the importance of adhering to regulatory standards.

The other options do not align with the definition of "sanctions." Rewards and incentives pertain to positive reinforcement for behavior that meets or exceeds compliance standards. Guidelines are frameworks designed to govern ethical behavior, but they do not involve punitive measures. Therefore, the context of compliance is accurately captured by understanding "sanctions" as a form of enforcement through penalties.