CFTC's recent focus on prop trading firms and KYC/AML obligations

Seeing a lot more noise lately around the CFTC tightening its grip on prop trading firms, specifically regarding their KYC/AML frameworks. It's not just the big names anymore; even smaller, boutique operations seem to be drawing increased scrutiny. My concern is less about the direct fines (though those are certainly impactful) and more about the operational overhead this is creating. How are others in the CFD space adapting to these evolving expectations, particularly with onboarding overseas clients? The jurisdictional complexities alone are a minefield, and keeping up with the nuances between various national regulators while maintaining a global client base feels like an uphill battle. Are firms seeing a significant increase in rejected applications due to stricter ID verification, or are the service providers evolving quickly enough to streamline the process? Always looking for practical insights, not just theoretical discussions of regulatory text.