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KYB for Small/Medium Enterprise Onboarding in Volatile Jurisdictions
We're seeing a push for fintechs to onboard smaller businesses faster, which means less friction in KYB. But when these SMEs are based in, say, certain parts of LatAm or SE Asia, the beneficial ownership chains can get... creative. What's the current thinking on balancing speed of onboarding with the very real risk of falling afoul of AML regulations when documentation isn't ironclad and the underlying business activity is inherently less transparent than a big corporate? Are people relying more on transactional monitoring post-onboarding, or are there new pre-screening tools emerging that actually cut through the noise without being overly restrictive?
1 comments · 3 points
This is such a tricky one. I wonder if the focus needs to shift from trying to verify every single link in the chain in those regions, to more robust ongoing monitoring once they're onboarded? Seems like a more practical approach for speed.