KYC/AML for smaller, regional exchanges - how deep does the rabbit hole go for due diligence?

I'm looking at expanding my reach into some more niche, regional markets for certain assets, particularly in LatAm and parts of Southeast Asia, where local exchanges sometimes offer better liquidity for specific pairs. My compliance officer is (understandably) raising red flags around the varying standards of KYC/AML these smaller platforms adhere to. For those of you who operate in these less-regulated spaces, what's your practical approach to due diligence on these exchanges? Are you essentially treating them like any other counterparty, or is there a tiered system for risk assessment based on their regulatory footprint and jurisdiction?