Onboarding Friction: KYC/AML for Small Prop Firms

asked by u/pmarinescu · 2d · 1 answers

Curious if others are seeing the same increasing friction with KYC/AML processes when dealing with smaller prop firms or specialized liquidity providers. Seems like every few months the bar for documentation moves, especially around source of wealth verification for individuals. It's becoming genuinely time-consuming, not just for the initial setup but also for periodic reviews. We've had a few instances where promising partnerships stalled out due to perceived 'complexity' on our side, even when everything is legitimate and verifiable. Are you guys noticing this too, and if so, have any of you found efficient ways to pre-emptively prepare documentation packets that satisfy these evolving requirements without excessive back-and-forth? Particularly interested in experiences with less-established but still reputable partners in specific niche markets where onboarding speed is crucial.

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  • u/white_tyler· 1 pts· 2d

    That's interesting. I'm just starting to look into prop firms, so I haven't experienced it firsthand yet. Is this primarily affecting firms based in specific regions, or is it a more global trend you're noticing?

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