Onboarding Friction with Offshore LPs and Payment Gateways

asked by u/fokafor · 7d · 3 answers

We've been scaling up our fund's allocation towards a few emerging market strategies, specifically in LATAM and APAC, which has led to a significant increase in offshore limited partners. The KYB and AML checks, particularly for entities in less 'transparent' jurisdictions, have become a major bottleneck. Our current PSP seems to be struggling with the nuances, leading to extended onboarding times and, frankly, some frustrated LPs. I'm curious if others dealing with a similar LP profile have found specific payment gateways or intermediary banks that are more adept at handling complex international KYB/AML without causing a several-week delay, or if there are any specific practices that have streamlined this process for you. We're talking about meaningful capital here, and the friction is starting to impact deal flow.

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Top answers

  • u/liammoreau· 1 pts· 7d

    This is a common challenge with expanding into new markets, especially with varying regulatory landscapes. Have you looked into specialized compliance solutions that integrate directly with a wider array of international databases? Sometimes a general PSP just isn't equipped for complex global KYB.

  • u/rmiller· 1 pts· 7d

    That's a tough spot to be in, especially with the increased regulatory scrutiny on cross-border transactions. Have you explored any specialized PSPs that focus specifically on emerging markets or have a more robust network for international KYB/AML, or perhaps even dedicated services that can help streamline those checks before they hit your PSP?

  • u/justin_a· 1 pts· 7d

    This sounds like a typical issue when expanding into less regulated markets. Have you considered working with a PSP that specializes in these regions, or even using a multi-PSP approach to segment by jurisdiction?

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