Curious if anyone's seeing increased scrutiny on KYC/AML for physical commodity movements, especially cross-border. Basel IV has tightened up capital requirements, but I'm wondering about the practical impact on due diligence for less liquid counterparties in emerging markets. Are the red flags changing, or just the intensity of their application?
That's an interesting point about Basel IV's ripple effect on less liquid counterparties. I've been wondering if the increased capital requirements might make banks more hesitant to even engage with those markets, regardless of the KYC/AML intensity. Have you seen any shifts in bank appetite for those types of transactions yet?
We've definitely seen an uptick in requests for beneficial ownership information, even for long-standing relationships. It seems less about new 'red flags' and more about an exhaustive application of existing ones, particularly when dealing with intermediaries in less transparent jurisdictions.
It feels less like the red flags are changing and more like the entire flagpole is now under a microscope. Especially with less liquid markets, it's becoming a delicate dance between due diligence and actually closing a deal before the paperwork outweighs the profit.