Anyone dealing with KYB for offshore entities registered in jurisdictions like Vanuatu or Belize? The level of due diligence required seems disproportionate to the transaction volume sometimes. How are others balancing regulatory obligations with operational efficiency without overburdening smaller clients or making the onboarding process prohibitive?
That's a perpetual challenge. We've found that segmenting clients by risk profile from the outset, and then tailoring the KYB process accordingly, helps. It's still not perfect, but it prevents over-documenting low-risk entities while ensuring high-risk ones get the scrutiny they need.
It's a common struggle. We've found that segmenting clients by risk profile and applying a tiered due diligence process helps, but the baseline for high-risk jurisdictions is still quite high, as regulators often don't differentiate much based on transaction volume. How are you documenting your risk assessment to justify any reduced due diligence?