AML compliance for new altcoin listings - what's the standard for exchanges?

I'm trying to get a clearer picture of how exchanges, especially the smaller or newer ones, approach AML when listing really nascent altcoins. Obviously, for $BTC or $ETH, the procedures are well-established. But for a project that might only have a few thousand holders and limited on-chain history, what's the due diligence process look like for an exchange trying to stay compliant? Is there a widely accepted framework or does it mostly come down to their own internal risk assessment, given the lack of clear guidance sometimes in this space? I'm curious how others involved in compliance or risk management at exchanges see this evolving.