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Compliance

How to eliminate corporate compliance fragmentation

· 7 minute read

· 7 minute read

Explore the frameworks that break market expansion compliance complexity

Highlights

  • Compliance complexity compounds as companies scale across jurisdictions and regulatory regimes.
  • Leading companies build intelligent compliance networks connecting tax, trade, legal, and risk functions.
  • Integrated systems deliver 79% improved efficiency and 65% increased revenue for growing organizations.

 

Imagine a scenario where you add a new jurisdiction. Legal adds a checklist, tax adds a filing calendar, risk adds a screening process, and trade adds a tariff workflow. Now imagine doing that three times across five jurisdictions and seven regulatory regimes.

The compliance function that once ran fine on spreadsheets is buckling. This is not because your team isn’t good enough but rather because the system was never built for this. The issue isn’t that companies lack tools, but rather that those tools were never designed to operate as a system.

The companies that continue to scale recognize this early and respond by building a shared foundation that lets tax, trade, legal, and risk operate from the same source of truth.

 

Jump to ↓
A new compliance model is emerging


The snowball effect of complexity


What the data shows


Why optimized compliance doesn’t mean more controls


How to start building an intelligent compliance network


Why you shouldn’t wait for the audit


Next steps

 

White paper

White paper

From fragmented to frictionless

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A new compliance model is emerging

A new compliance model that ensures compliance isn’t managed function by function, but instead as an ecosystem, is emerging. Increasingly, leading companies are building towards what can be thought of as an intelligent compliance network. It works as a layer across tax, trade, legal, and risk where data, workflows, and decisions are governed by Fiduciary-Grade AI™ — ensuring outputs are grounded in trusted content, auditable, and reliable enough for the highest-stakes compliance decisions enabling scale without compounding complexity.

The companies scaling confidently past $250M aren’t the ones with the biggest teams. They’re the ones who recognized that complexity compounds and built infrastructure to match before they needed to.

How companies manage interdependencies is what separates those that scale cleanly from those that stall, not more controls. The ones moving fastest are building an intelligent compliance network that grows with them, allowing decisions in one part of the business to immediately inform the rest.

At this stage, the challenge isn’t getting work done. It’s knowing that the output is complete, accurate, and reliable enough to act on every time.

The snowball effect of complexity

Each new jurisdiction adds requirements and multiplies interdependencies. For example, a classification error in Singapore may trigger a risk flag in the US or a tax decision in Germany may ripple into legal entity structure in the UK.

None of these functions can operate in isolation, yet most compliance teams at the $50M+ stage are running on disconnected tools, separate data stores, and manual handoffs between departments. The result is a growing tax on growth itself, leading to more time chasing information, more exposure to error, and slower decisions at exactly the moment speed matters most.

Without a shared foundation, complexity compounds faster than teams can respond.

What the data shows

The cost of corporate compliance fragmentation is well documented. Forrester research commissioned by Thomson Reuters found that 80% of director-level decision-makers say cross-departmental collaboration is essential to meeting strategic goals.

Here’s what’s happening in practice:

  • 55% of teams waste excessive time tracking requests across different platforms
  • 45% report compliance blind spots on decisions requiring input from tax, trade, legal, and risk
  • 62% experience increased compliance risk because enabling functions aren’t talking to each other²

The commercial cost escalates with size too. An audit finding that gets forgiven at $50M becomes a material concern at $250M and above. Fragmented systems may get you into new markets, but they break as interdependencies multiply. This is when decisions in one jurisdiction create ripple effects across the enterprise, and manual coordination can’t keep up.

Why optimized compliance doesn’t mean more controls

Optimized compliance means compliance is wired into how the business operates; shared data, clear ownership, and automation handling the repeatable work, so your team spends their time on judgment calls, not admin.

AI is accelerating this shift. 80% of professionals expect AI to have a high or transformational impact on their work within five years, not by replacing judgment, but by creating capacity in stretched teams to focus on higher-value decisions.

This is where a shared foundation becomes decisive.

The question that separates companies scaling confidently from those that stall is, “Do your tax, trade, legal, and risk functions share one version of reality, or four?”

When it’s one, a regulatory change in any jurisdiction surfaces implications across all of them. This can manifest as a trade alert that feeds straight into your tax system, workflows that used to take three meetings happen without prompting, or compliance stops being a brake on growth. When it’s four, you spend your compliance budget on coordination instead of insight.

How to start building an intelligent compliance network

Companies don’t build an intelligent compliance network overnight. They start by fixing the workflows with the highest friction first, then scale from there.

  • For tax, stop manually reconciling across jurisdictions. Automate filing, e-invoicing, and close cycles.
  • For legal, leverage AI-assisted tools to cut research and drafting time dramatically and reduce outside counsel spend.
  • For risk, Know your Customer (KYC), sanctions monitoring, and enhanced due diligence can all run faster and leaner with the right infrastructure behind them.
  • For trade, real-time screening and duty optimization turns a cost center into a competitive edge, especially when tariff regimes can shift overnight.

Companies deploying integrated tech from a single vendor report the difference with 79% seeing improved operational efficiency, 65% seeing increased revenue, and 54% making faster decisions.¹

Why you shouldn’t wait for the audit

There’s a moment that usually takes place mid-audit or two weeks before a funding round closes when fast-growing companies realize their compliance model hasn’t kept pace. By then, the fix is expensive and urgent, and it didn’t have to be either.

The companies scaling confidently past $250M aren’t the ones with the biggest teams. They’re the ones who recognized that complexity compounds and built infrastructure to match before they needed to.

The staircase only goes up. The question is whether you’ve built solid steps, or you’re improvising as you climb.

Next steps

Compliance complexity doesn’t announce itself, it accumulates quietly, jurisdiction by jurisdiction, until the systems that got you into new markets start slowing you down. Our white paper walks through how fast-growing companies can identify fragmentation risk, navigate cross-border complexity, and build a scalable operating model that embeds compliance into everyday work.

Download From Fragmented to frictionless to get a practical guide for companies scaling compliance across jurisdictions.

¹ A Forrester Consulting thought leadership paper commissioned by Thomson Reuters, October 2025: AI Meets Governance And Compliance: Enabling Cross-Functional Intelligence To Accelerate Strategic Execution

² Forrester Total Economic Impact study commissioned by Thomson Reuters, October 2025: The Total Economic Impact™ Of Thomson Reuters ONESOURCE+: Cost Savings And Business Benefits Enabled By ONESOURCE+

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