KYB for non-US entities operating within US regulatory scope
Curious on best practices for KYB when onboarding non-US entities that are still effectively operating within a US regulatory purview. Specifically, thinking about a scenario where a foreign-registered company has substantial US client exposure or is dealing in assets (like certain crypto tokens) that are increasingly being scrutinized by US agencies. What kind of extended due diligence is everyone finding necessary beyond standard jurisdiction-based checks? Are we seeing more requests for beneficial ownership clarity extending into ultimate beneficial owners even if layers of corporate structure are overseas? Seems like the extraterritorial reach of US regs is creating a compliance challenge for many. The idea of 'US person' seems to be expanding beyond just residency.
This is a tricky area. We've found that applying a risk-based approach with an increased due diligence threshold for these entities is crucial, often including enhanced beneficial ownership verification and a deep dive into their operational nexus with the US.