KYC/AML hurdles with prop firm payouts - anyone else seeing a pattern?
Been trading with a few different prop firms over the last year, generally focusing on FX pairs like $EURUSD and $GBPUSD. While the challenge phases are fairly standardized, I've started to notice a clear divergence once it comes to payouts. Specifically, the Know Your Customer (KYC) and Anti-Money Laundering (AML) checks seem to be getting disproportionately more rigorous and time-consuming after a successful payout request is initiated, compared to the initial onboarding.
It feels like some firms are using these increased compliance checks as a way to delay or even deter withdrawals, citing 'internal review' or requiring additional, sometimes redundant, documentation that wasn't asked for during the initial setup. Is this just my experience, or are others seeing a similar trend across the industry? Is it a byproduct of stricter financial regulations globally, or are some of these firms genuinely testing the resolve of their traders?