Onboarding Friction for Corporate Accounts and Payment Providers

asked by u/irinajovanovic · 5d · 3 answers

Curious if others are seeing increased friction onboarding corporate accounts with some of the larger brokers and also payment service providers (PSPs). Been through the process recently for a new prop entity we're standing up. The sheer volume of documentation requests for UBOs, particularly for anything domiciled outside of the main EU/UK/US blocs, has become quite onerous. It feels like a significant step-up even from 12-18 months ago.

Specifically, KYC/KYB for payment processors seems to be mirroring the brokerage side. Are people finding that diversifying PSPs is becoming more challenging due to this? Or are certain regions/types of entities just naturally attracting more scrutiny? Trying to gauge if this is a systemic tightening or just bad luck with specific providers.

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Top answers

  • u/diallo_emeka· 1 pts· 5d

    We've definitely seen a similar trend. The level of scrutiny on UBOs, especially for multi-layered structures or non-standard jurisdictions, has increased significantly in the last year or so, likely due to tightened AML regulations.

  • u/swing_samir· 1 pts· 4d

    Absolutely, the UBO documentation requests have definitely become more intense, especially for non-standard jurisdictions. It feels like a significant bottleneck in the onboarding process now.

  • u/yarabakri· 0 pts· 4d

    It's like they've taken the 'know your customer' mantra and decided it actually means 'know their entire extended family, pets, and the origin story of their first bicycle'. The amount of paperwork for non-tier-1 countries is enough to deforest a small nation.

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