We’re halfway through 2025, and if there’s something that makes more sense than ever, it’s that regulatory complexity is rising fast across private capital markets. From investor screening to cross-border tax management, all workflows are likely being strained by:
- ・Manual KYC checks
- ・Prolonged due diligence cycles
- ・Fragmented or inconsistent data handling
These traditional approaches to compliance unnecessarily create friction, slow critical transactions, and increase operational risk. Thomson Reuters reports that 73% of compliance professionals expect a sharp growth in regulatory activity annually.
Now the thing is: there’s no shortage of compliance tools as such.
The problem is that most of them were built in isolation. That’s why data lives in silos, processes don’t talk to each other, and fund managers like you end up stitching together half-automated steps that obviously feel manual.
RegTech flips that model.
This blog provides a closer look at how it helps overcome specific compliance challenges and highlights the role tools like RAISE CRA play in this process.
Why Does Traditional Compliance Fall Short for Fund Managers?
The answer is simple: manual compliance workflows carry too much weight and lack sufficient structure for those operating across diverse asset classes, jurisdictions, and investor types. They typically create the following roadblocks:
1. Broken workflow chains
Compliance processes often span:
- ・Offline risk classification worksheets
- ・File shares or email threads
- ・Standalone KYC platforms
If there’s no integrated workflow, it’s possible to lose oversight of the most critical tasks at hand.
Moreover, global standards such as the US Foreign Account Tax Compliance Act (FATCA) and OECD’s Common Reporting Standards (CRS) as well as local AML/KYC regulations, change frequently. Managing them is difficult when tools don’t flex with such shifts.
2. Fragmented compliance steps
For many fund managers, onboarding an investor still means:
- ・Receiving scanned PDFs over email
- ・Manually extracting and validating ID and entity data
- ・Running checks across disjointed databases or spreadsheets
Even the simplest cases can take days or weeks to resolve, which increases the likelihood of drop-offs, missed updates, and reporting delays.
3. Risk amplified by manual reviews
Human-led reviews are resource-intensive and inconsistent:
- ・Data is copied and pasted into internal systems
- ・KYC analysts sift through varied formats and languages
- ・There’s limited audit traceability if something goes wrong
This not only drains resources but also makes it harder to scale team effort across multiple funds and geographies.
So, What Is RegTech?
Short for regulatory technology, RegTech refers to the use of technologies like Artificial Intelligence (AI), Machine Learning (ML), and cloud computing to help fund managers meet regulatory requirements through automation, data integration, and workflow design.
In the financial services sector, RegTech has matured significantly over the last decade. However, the private capital market has yet to adopt it fully. Given how traditional compliance processes aren’t delivering favorable outcomes, RegTech can indeed be a game-changer.
It brings structure, interoperability, and real-time intelligence across the compliance lifecycle, providing managers with a clear view of what has been completed and what still needs attention.
| Aspect | Traditional Compliance | With RegTech (RAISE CRA) |
|---|---|---|
| Data handling | Manual, siloed | Integrated, automated |
| Oversight | Spreadsheet/email chains | Centralized dashboards |
| KYC & AML | Disjointed, slow | End‑to‑end, auditable |
| Scaling | High resource demand | Configurable & future‑ready |
Understanding what RegTech can do is one side of the coin. Seeing how it transforms day-to-day compliance is another.
RAISE CRA: A RegTech Solution
RAISE Compliance Risk Assessment (CRA) is a next-generation compliance platform that streamlines and optimizes essential processes such as due diligence, Anti-Money Laundering (AML), and KYC procedures, effectively meeting the demands of the private capital market by delivering measurable outcomes enabled by RegTech.
Here’s how.
1. Document processing driven by AI
According to McKinsey, automation in data extraction can reduce average document processing time from hours to minutes. This is particularly beneficial in multi-entity fund structures. RAISE CRA’s AI engine can automatically extract and populate KYC fields. Here’s how:
- ・Uploaded documents are parsed instantly
- ・Key data fields are pre-filled for review
- ・Errors from manual entry are reduced at the source
Result: RegTech eliminates low‑value manual work, freeing your compliance teams to focus on high‑impact reviews and strategic risk management.
2. KYC and AML made auditable
When your compliance tasks are handled across inboxes, spreadsheets, and side tools, it’s easy to miss a step or, worse, forget who owns it.
Investors interact with you through RAISE Connect, our secure portal where they submit documents and track requests. Behind the scenes, your internal team uses RAISE CRA to structure and audit those KYC/AML workflows end‑to‑end.
You benefit from:
- ・Adjusting checklists based on investor type and jurisdiction
- ・Triggering automated reminders to flag overdue items
- ・Tracking tasks centrally, with live status updates
Result: RegTech transforms KYC/AML into a provable, traceable process that can stand up to any regulator’s scrutiny.
3. Effortless alignment with global tax standards
Static templates and outdated business logic can’t keep up with evolving FATCA and CRS rules, resulting in classification errors and increased exposure. RAISE CRA embeds FATCA and CRS fields directly into the investor record:
- ・Profiles are automatically populated based on form inputs
- ・Export-ready reports reduce rework during filing
- ・Classifications update as new data is received
Result: RegTech embeds regulatory logic into workflows, allowing tax classifications to evolve automatically as rules change.
4. Precise risk classification
Different investor types often trigger different KYC, AML, or tax reporting rules. Segmentation ensures that the proper checks are applied to the right people. However, when this process is either overly simplistic or manual, risk control tends to overreach or miss the mark.
RAISE CRA builds dynamic risk profiles using live data points:
- ・Historical activity or exceptions
- ・Integrated scoring logic for red flags
- ・Country of origin, investment pattern, and source of funds
Result: RegTech employs nuanced risk scoring, enabling your compliance team to prioritize high‑risk cases first and process low‑risk ones more quickly, boosting overall team efficiency.
5. Sanction screening built in
Most compliance teams still run sanction checks in external databases, capture screenshots, and then manually log results. That means audit trails are scattered and easily get lost. RAISE CRA integrates directly with Open Sanctions and similar data providers to:
- ・Screen investors in real time
- ・Detect PEPs, adverse media, and restricted entities
- ・Store a complete check history inside each investor profile
Result: RegTech streamlines this critical step, allowing your team to handle sanction checks faster and more consistently while maintaining a complete, auditable record.
6. Live dashboards for real‑time insight
Robust reporting is underrated in compliance. When there’s real-time visibility into the people, processes, and people involved, it’s easier to adjust a strategy, follow up efficiently, and meet regulatory requirements on time.
RAISE CRA offers a single, user-friendly interface, which allows your internal team to:
- ・View risk levels and classification status at a glance
- ・Monitor bottlenecks and stay ahead of audit timelines
- ・Track investor verification, AML screening, and document collection
Result: RegTech equips your team with a centralized command center to monitor compliance status in real time and generate accurate reports when needed.
7. Scale without losing control
Most fund managers outgrow their compliance systems before they realize it. Expansion adds new jurisdictions, investor types, and service providers to the mix, which means there’s more room for error. RAISE CRA grows with the requirements. It can:
- ・Maintain a single source of truth across teams
- ・Configure workflows for each fund, entity, or investor class
Result: RegTech future‑proofs compliance, enabling managers to layer on new funds, regions, or investor types without rebuilding processes.
In Conclusion
What you can control is how you respond.
RAISE CRA provides your team with the structure, automation, and visibility necessary to manage compliance with less friction and greater control. It centralizes tasks, reduces manual work, and equips you to meet both investor expectations and regulatory demands.
If you’re looking to modernize your approach, start here.
Book a demo of RAISE CRA and discover how it can enhance your compliance operations.
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