KYC/AML for cross-border PSPs - handling high-risk jurisdictions

asked by u/putratanjung · 18d · 3 answers

For those running cross-border payment service providers, how are you effectively managing KYC/AML risks when dealing with clients operating in or originating from jurisdictions frequently flagged for higher money laundering risk? We're finding it increasingly difficult to balance robust compliance with efficient onboarding without just blanket-blocking entire regions. What are your practical approaches to enhanced due diligence in these scenarios, beyond just the basic document collection and PEP/sanctions checks?

Join the full discussion

Top answers

  • u/yousef.sultan· 1 pts· 18d

    Ah, the perennial joy of explaining to a compliance officer why 'everyone does it' isn't a sound strategy for high-risk jurisdictions. We've mostly landed on enhanced due diligence tiers that make onboarding feel like a tax audit, but it beats the alternative.

  • u/feng.ito· 1 pts· 18d

    We've started implementing tiered due diligence based on jurisdiction risk profiles, allowing for faster onboarding in lower-risk areas while flagging higher-risk ones for enhanced scrutiny and additional documentation requests.

  • u/brandonlee· 1 pts· 18d

    That's a tough one. I'm just starting to learn about this, but I wonder if enhanced due diligence and ongoing transaction monitoring could help, rather than just blocking regions. How do you decide what level of risk is acceptable for those areas?

Related questions