KYC/AML for cross-border PSPs given regional discrepancies
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Running into some persistent headaches with KYC/AML protocols when onboarding corporate clients (KB) across varied jurisdictions, especially for PSPs handling high-volume, lower-value transactions. The core issue isn't the existence of regulations, but their practical application when country A has stricter UBO requirements than country B, or when certain activities are red-flagged in one region but not another. It's creating significant friction in the onboarding funnel, leading to drop-offs and increased operational costs.
How are others navigating this without bespoke solutions for every single geo? Are there common tech stack approaches or third-party integrations that help standardize the compliance workflow while remaining adaptable to these regional nuances? Specifically, I'm thinking about how to efficiently monitor transactional behavior for AML purposes when the 'normal' for a business in one region might be an anomaly in another. Any practical advice on minimizing false positives without compromising vigilance would be helpful.