KYC/KYB for Institutional Clients – The Perpetual Headache
Curious how others are navigating the ever-tightening grip on institutional client onboarding, specifically in non-Tier 1 jurisdictions. We're seeing an increasing demand for beneficial ownership verification that goes several layers deep, often into complex trust structures, even for established funds. It's a massive drain on resources and frankly, often feels like overkill when the AUM and track record are clearly there.
Are you finding a practical way to streamline this without taking on undue risk? Or is it simply a cost of doing business now, where the compliance team's size is directly proportional to your geographic reach? Seems like regulators are pushing for 'perfect' data even when the practical outcome for risk mitigation isn't significantly improved beyond the first couple of layers. What's your experience been with auditors on this front – are they reasonable about what's achievable in diverse markets?
Completely agree, the rabbit hole for beneficial ownership can be never-ending. We've found that having a robust, adaptable tech solution to help map out those complex structures and track changes has been a lifesaver, especially when dealing with entities in less straightforward jurisdictions.