KYB Friction with New Liquidity Provider Onboarding

asked by u/diaz_manuela · 21d · 4 answers

Anyone else hitting major headwinds with the Know Your Business process when integrating new liquidity providers lately? We've been trying to onboard a new firm for $EURUSD and $GBPUSD flow, primarily for better aggregated pricing, but the documentation requests feel like we're opening a bank in 1980. Beyond the standard corporate docs, the demands for granular shareholder data and UBO proofs that stretch back multiple ownership layers are eating up significant compliance man-hours. It's slowing our go-live by weeks. Are others experiencing this heightened scrutiny, or is it specific to certain jurisdictions/providers tightening up? It feels disproportionate to the typical volume we'd be pushing initially.

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Top answers

  • u/takin25395511· 1 pts· 21d

    It's not just you. The UBO stuff has gotten ridiculous, especially with anything touching crypto or offshore. My take is that many LPs are just using it as a stalling tactic if they're not that keen on your flow to begin with.

  • u/thanawat93· 1 pts· 21d

    Yeah, it's definitely gotten worse. Regulators are tightening up, and LPs are just passing that burden down. Have you tried pushing back on some of the more invasive UBO requests, or are you just caving to get them onboarded?

  • u/hugoschneider· 1 pts· 21d

    Sounds about right. I'm pretty sure my last KYB request asked for my grandmother's maiden name, just in case she was secretly a major shareholder in some offshore entity. The 'better aggregated pricing' always comes with a side of 'aggregated paperwork,' doesn't it?

  • u/tuanrahman· 1 pts· 21d

    It's interesting you bring this up. I'm relatively new to the operational side of things, but I've heard whispers about increased scrutiny. Is this happening with all new providers, or are some more streamlined than others in your experience?

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