Definition:
Regulatory bodies are organizations or government entities responsible for overseeing compliance within specific industries, ensuring businesses adhere to established laws and regulations.

Contextual Explanation:
In the payments industry, regulatory bodies like the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and the Securities and Futures Commission (SFC) monitor financial activities to prevent fraud, money laundering, and other financial crimes.

Why It Matters:
Regulatory bodies help maintain financial stability, protect consumers, and ensure fair market practices. Non-compliance can result in severe penalties and operational restrictions.