How US Fund Managers Are Re-engineering Compliance

November 13, 2025

📝Editor’s Note

Global regulators are placing sharper scrutiny on AI-enabled compliance systems. As financial firms adopt automation, the focus is shifting from data collection to how decision-making transparency is maintained. The coming months will test whether companies can balance efficiency with accountability.

How US Fund Managers Are Re-engineering Compliance

The era of offshore efficiency is ending. US fund managers operating through Cayman, BVI, or Luxembourg structures are discovering that the biggest cost pressure now comes from compliance, not taxation. FATCA, CRS, and the upcoming CARF framework have introduced layers of complex reporting requirements, each demanding granular investor data, classification, and XML-based submissions. Most legacy systems were never built to manage these concurrent obligations, resulting in duplication, inefficiency, and high operational costs.

Leading firms are responding by consolidating data and automating validation across these frameworks. RegTech solutions are now central to this transformation, enabling continuous monitoring, unified data pipelines, and real-time regulatory reporting. Instead of running from compliance, firms are engineering it into their operations, turning it into a source of operational strength.

Key takeaway: In 2025 and beyond, a fund’s advantage lies not in its jurisdiction but in how efficiently it manages regulatory data.

✅ Best Practice Spotlight

Strengthening Compliance Program Resilience

  1. Conduct quarterly risk assessments rather than annual reviews.

  2. Map third-party data flows to prevent hidden exposure.

  3. Use behavioral analytics to detect insider threats.

  4. Keep regulatory change logs accessible to all departments.

  5. Train teams to interpret AI-generated compliance alerts.

🛠️ Tool of the Week

JFrog – Managing Supply Chain Risk in Software Delivery

JFrog provides an end-to-end platform for managing software supply chain risks. It helps compliance teams maintain visibility into open-source components and third-party dependencies.

Key Features

  • Monitors for vulnerabilities in real time.

  • Supports SBOM (Software Bill of Materials) compliance.

  • Offers automated license compliance checks.

  • Integrates with DevOps pipelines for continuous risk management. 

🌟 Leader Spotlight

Bite Data Secures $3 Million for AI-Driven Trade Compliance

Bite Data, a startup building AI-powered tools for global trade compliance, has raised $3 million in seed funding. The company aims to simplify customs documentation, automate tariff classification, and flag potential export violations. With rising cross-border trade regulations, Bite Data’s technology seeks to make compliance more accessible to small and mid-sized exporters. Its founders plan to expand into the European and Asian markets next year.

🗳️ Your Compliance Take

Results of our last poll. AI governance seems to be the top compliance area in 2026.  

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