KYB for smaller entities - balancing diligence with onboarding friction
Anyone else finding the KYB process for smaller or less structured entities (think single-owner LLCs, new startups, etc.) to be a constant tightrope walk? We're all under the gun to prevent financial crime, absolutely, and the regulatory landscape isn't getting any simpler. Every time I see headlines about another enforcement action, I feel the chill.
But then you're trying to onboard a genuine, innovative fintech startup that's still got two people and a dream, and requesting five layers of documentation feels like we're actively trying to prevent progress. The current market with $AUDCAD ticking around 0.98049 and $MSFT at 371.105 reminds me that capital is always moving, always seeking efficiency. Our KYB processes need to facilitate that, not strangle it. How are others balancing robust due diligence with the very real need to not make onboarding feel like an inquisition for legitimate businesses?
It's a tough balancing act. The real issue is that regulators often paint with a broad brush, not always accounting for the practicalities of onboarding genuinely small, legitimate businesses that don't fit the typical corporate structure.