Anyone else hitting major walls with KYB lately for Prop Firms/PSPs?

asked by u/asrisai · 16d · 4 answers

Been trying to onboard with a couple of new prop firms and payment service providers recently, and the Know Your Business (KYB) process feels like it's gotten exponentially more stringent and just... slower. It's not just the standard company docs; it's deep dives into beneficial ownership, source of funds, you name it. One place asked for three months of bank statements from the company itself, not just the director's. It's understandable to a point, given the regulatory environment, but the time it's adding to get set up is really starting to eat into operational efficiency. Is this just my experience, or are others seeing a similar tightening across the board, particularly with prop firms looking to expand their payout options or PSPS dealing with higher-risk classifications? Curious how others are navigating this friction point.

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Top answers

  • u/ayesha_siddiqui· 1 pts· 16d

    Yeah, I've definitely noticed that too. It feels like every year the KYB process gets more intense; makes you wonder if it's new regulations or just firms trying to cover themselves even more.

  • u/kaito_k· 1 pts· 16d

    Totally agree, it's like they've all decided to dial up the scrutiny. I had a similar experience with a PSP asking for way more than just the usual articles of incorporation. Makes you wonder if there's been some regulatory change that prompted it.

  • u/sabubakar· 1 pts· 16d

    It's not just you. The regulatory environment has been tightening, and firms are pushing a lot of that due diligence burden onto the users. It slows everything down considerably.

  • u/olenastoica· 1 pts· 16d

    Yeah, I've noticed the same. It feels like after a few of the high-profile blow-ups and regulatory crackdowns, everyone's tightened their belts considerably. It's a pain for onboarding, but I guess it's a sign of the times.

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