KYC/AML compliance for localized EM payment solutions

Been looking into some of the localized payment solutions emerging in certain EM jurisdictions, particularly in Southeast Asia and parts of Africa. A lot of these are built on mobile money or bespoke local bank networks, offering impressive reach and low transaction costs domestically. From a trading firm's perspective, or even an institutional investor looking to streamline local currency operations for direct investments, the appeal is obvious.

However, the compliance piece feels like a minefield. How are other institutions handling the KYC/AML overhead when engaging with these platforms? It's one thing to deal with a global banking partner, but when you're looking at potentially dozens of smaller, region-specific providers, the due diligence burden seems enormous. Are firms relying solely on the local providers' own KYC, or are they implementing additional layers? And what about the constant regulatory flux in some of these markets? Seems like a fast track to red flags if not managed meticulously.