Onboarding Friction with Offshore FX Brokers and KYC/AML
Anyone else finding the KYC/AML process with some of the smaller offshore FX brokers becoming almost prohibitively cumbersome recently? It seems like every time I try to onboard with a new one, the document requests become more intricate, the review times longer, and the hoops to jump through more numerous. It's not just the standard passport and utility bill anymore; it's bank statements with specific transaction types highlighted, proof of address going back several years, or even video verification that feels more like an interrogation.
I understand the regulatory pressure is immense, especially post-pandemic, but it really makes you reconsider diversifying your broker relationships when each new one feels like a month-long project just to get funded. I'm curious if this is a universal experience or if I'm just hitting a bad run. What's your threshold for this kind of friction before you just move on to another option?
Definitely noticing this too. I think a lot of it has to do with increased regulatory pressure on their end, even for offshore operations, to prevent money laundering. It's a pain for us but understandable.