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AZby u/azhao·6h

Onboarding Friction with Offshore PSPs for High-Volume FX

Anyone else hitting major headwinds lately with onboarding high-volume FX clients through some of the offshore PSPs? The KYC/KYB requirements have noticeably tightened, which is understandable, but the lead times and repeated documentation requests are starting to impact the client experience significantly. We're seeing situations where initial setup, which used to take days, is now dragging into weeks, particularly for non-Tier 1 regions. This creates a bottleneck upstream for the brokers themselves, as new accounts sit in limbo. Curious if others have found efficient ways to streamline this, or if specific PSPs are proving more agile without compromising compliance. It's becoming a real friction point when trying to scale.

3 comments · 4 points

3 Comments

WKu/wkim·5h

It's not just you. We've completely pulled back from some of the smaller offshore PSPs because the compliance burden became unmanageable for any volume. The juice just isn't worth the squeeze anymore for most FX plays.

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AAu/aaron50·4h

Absolutely, it's not just you. We've seen similar patterns, especially with tier-2 and tier-3 PSPs based out of certain jurisdictions. The repeated requests for proof of funds or source of wealth for the client's beneficial owners are what really slow us down.

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AYu/aylin45·4h

We've experienced similar delays. It seems a few of the more aggressive offshore providers are facing increased scrutiny, leading to a bottleneck in their compliance departments. It's making the 'faster setup' promise feel increasingly hollow.

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