The KYC/KYB vs. onboarding friction balance in new markets

We've been looking to expand our payment processing services into a few new LATAM markets, and the push-pull between robust KYC/KYB for AML compliance and maintaining a smooth, low-friction onboarding experience is a constant challenge. Specifically, some local regulations seem to mandate more extensive documentation than what we've historically seen for similar risk profiles elsewhere, leading to higher drop-off rates during sign-up.

Anyone have strategies or tech solutions they've found particularly effective in bridging this gap? Curious how others are navigating these regional nuances without sacrificing either compliance or growth.