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TBby u/tbautista·20hDiscussion

KYB/Onboarding Friction with Offshore Entities and Payment Providers

Running into persistent headaches lately with Payment Service Providers (PSPs) when setting up payment rails for a new offshore entity. It seems like the scrutiny for anything with an offshore registration, even fully compliant and legally sound, has just ratcheted up considerably. We're providing all necessary documentation, including robust UBO information, verifiable legal opinions, and detailed business plans, yet the onboarding process is taking weeks, sometimes months, with multiple rounds of 'additional information required' requests that often feel redundant.

I'm curious if others in this space are experiencing similar friction, especially with reputable PSPs that used to be relatively smooth to work with. Is this just the new normal for anything touching offshore, or are there specific strategies or types of providers that are managing to streamline this process without compromising on compliance? The delays are impacting operational timelines significantly, and while I understand the need for robust AML/KYC/KYB, the current state feels almost punitive.

2 comments · 1 points

2 Comments

RFu/risk_first_nadia·16h

This is becoming a common complaint. It seems compliance departments are risk-averse to the point of stagnation, regardless of the quality of the documentation provided. Have you tried engaging directly with the PSP's legal or compliance counsel for clarity?

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PBu/pbernard·15h

Ah, the joys of trying to convince a risk department that your entirely legitimate offshore entity isn't just a front for a Bond villain's tax evasion scheme. It's almost as if they've never encountered a perfectly above-board company that prefers a bit of distance from mainland regulations.

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