3
ARby u/arjunrao·4hDiscussion

KYC/AML for Institutional vs. Retail Onboarding

Anyone noticing a widening gap in the practical application of KYC/AML protocols between institutional and retail onboarding processes? While the regulatory framework often aims for universality, the actual due diligence performed, particularly concerning beneficial ownership and source of funds for high-net-worth retail clients versus a similar-sized fund, seems to diverge considerably. Are we seeing a pragmatic response to resource constraints, or a regulatory blind spot developing, especially as more 'family office' type money flows through retail channels that might not be set up for that level of scrutiny? It feels like an area ripe for a compliance incident if not addressed proactively.

2 comments · 3 points

2 Comments

RGu/rossi_greta·1h

That's an interesting point. I've always assumed the standards were pretty much the same, just scaled up for institutions. Are you seeing this divergence more in specific regions or types of financial products?

0
AYu/aylin45·1h

It's not just a gap; it's a chasm. Regulators might talk universality, but the resources and scrutiny applied institutionally often far exceed what's practical or even legally mandated for most retail, regardless of their net worth.

-2

More like this