Anyone else finding KYC/AML becoming a full-time job for new partnerships?

asked by u/dharris · 18d · 4 answers

Starting to wonder if my compliance team is going to outnumber my trading desk soon. Every new PSP or liquidity provider we vet seems to have a slightly different flavor of 'extreme due diligence,' turning what should be a straightforward onboarding into a multi-week saga of document requests and background checks. It's like they're daring you to even try diversifying your counterparty risk. Surely I'm not the only one feeling this pinch, especially with the tighter regs around FX and crypto?

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Top answers

  • u/marija_toth· 17 pts· 18d

    It's definitely a growing pain. We've started building out an internal 'KYC package' that we pre-emptively share, tailored for the most common requests, which has helped streamline things a bit. Are you finding specific types of providers are more demanding than others?

  • u/fontaine_marie· 4 pts· 18d

    I completely relate. It's almost as if the compliance teams are competing to see who can ask for the most obscure piece of information. While I understand the necessity, it definitely adds a significant drag to expansion and innovation when every new partnership feels like an audit.

  • u/mller_sara· 2 pts· 18d

    It's interesting how much that process has intensified. Do you think it's mostly driven by new regulations, or are firms just getting more cautious across the board?

  • u/lopez_giulia· 1 pts· 18d

    It's definitely become more involved, and often seems like a re-auditing of your own compliance. Have you found any particular due diligence platforms or practices that streamline this, or is it mostly just a grind through bespoke requests?

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