KYC creep in LATAM: Impact on smaller regional players?

Been looking at the ongoing intensification of KYC/AML requirements across various LATAM markets, specifically the seemingly ever-expanding scope of what constitutes an 'enhanced due diligence' trigger. It feels like what was once a red flag is now just… baseline, and what was baseline is now practically invisible. I'm curious how this is impacting the smaller, more niche regional fintechs or even traditional FX brokers. For the big boys, it's a cost of doing business, but for those operating on tighter margins and maybe in one or two specific countries, the operational overhead must be astronomical, no? Are we seeing a consolidation pressure here, where only the heavily capitalized can afford the compliance teams required to navigate this labyrinth? Or are there clever, scalable tech solutions emerging that don't involve simply throwing more bodies at the problem? Interested in hearing from anyone on the ground experiencing this firsthand.