Onboarding Friction for PSPs – Anyone Else Seeing Increased Scrutiny?
Been navigating the onboarding process with a few different payment service providers lately, both for fiat and crypto processing, and it feels like the goalposts have shifted significantly in the past 12-18 months. What used to be a relatively smooth KYC/KYB process, even for established entities, now seems to involve layers of additional documentation, extended review periods, and often, follow-up questions that feel quite intrusive.
I understand the regulatory environment is tightening, especially around AML/CFT, and the FATF guidance has certainly made its mark. However, it's starting to create a real drag on operational efficiency when trying to diversify processing partners or even just open new accounts for new ventures. The disparity between what's requested upfront and what eventually becomes critical for approval is also perplexing. Are others in the PSP space experiencing this heightened scrutiny and elongated timelines, or is it specific to certain business models or jurisdictions? Would be interested to hear about others' experiences and any strategies for streamlining this process without cutting corners.