[residentraspber]

Been working in the Fintech space for the past 3 years and what I've learned is that deep down no bank trusts any other. No other bank wouldn't trust that a random bank actually correctly verified the persons identity before giving them an account.

I imagine this also works with other vendors. All you need is 1 company with a weak process.

[hermitdev]

Probably a lot of it is due to know your customer (KYC) rules. I am not allowed to take your word that you've done your due diligence; I have to do my own.

I've spent ~20 years working in and around finance, on the trading side. If your lawyers aren't paranoid about KYC, that's a major red flag.