The study aimed to identify the extent of compliance of commercial banks operating in the Zawiya Municipality with policies and procedures related to combating money laundering and terrorist financing, and to identify the obstacles and challenges facing compliance departments in implementing established policies related to combating money laundering and terrorist financing. It also proposed recommendations to improve the level of compliance with policies and standards. The inductive approach was used, extrapolating various aspects of the topic from previous studies and scientific research. Data and information were collected through personal interviews and a questionnaire distributed to a number of bank employees operating in the Zawiya Municipality. The study reached several conclusions, the most important of which are: Some banks adhere to a moderate degree of compliance with procedures and policies related to combating money laundering and terrorist financing, particularly in areas related to customer identification procedures and updating customer data. They also fail to report suspicious transactions as required, despite some indications, due to a lack of understanding of reporting procedures. The study results also revealed weaknesses in specialized periodic training programs for employees regarding combating money laundering, which negatively impacts their level of understanding of procedures and their actual implementation. There are also differences in the degree of compliance between banks, attributed to variables such as the number of years of experience and the type of bank.................. Keywords:................ Money laundering, terrorist financing, anti-money laundering and terrorist financing, compliance management.