[t-3]

... and financial services companies huge and small still go out of their way to help their clients move money around in a myriad of ways, because it's very lucrative and there are so many loopholes and ways to obscure things. Offloading the responsibilities of law enforcement and regulatory bodies to private companies makes things worse for everybody. Providing non-crime services to criminals should not be a crime any more than selling a candy bar to a criminal is. As long as you aren't actively aiding or covering up for a crime, not reporting criminal activity is not even a crime in many areas, and if KYC can effectively identify criminals, law enforcement should be able to do it themselves.

[fragmede]

No fintech within reach of the US government is going to give money to terrorists under sanctions on the SDN without facing severe fines/consequences. That various groups have faced consequences for giving money to terrorists is a sign of the system working, not that it doesn't work. No system is going to be 100% perfect, but the US is pretty serious about having no one they have control over sending money to eg North Korea.

[t-3]

Ok, terrorists and countries we've been at war with for 70 years. What about drug dealers, mafias, hitmen, corrupt politicians, white collar criminals, scammers, etc? Criminals that actually threaten Americans? Nobody cares about whether terrorists or whatever tinpot dictator can get funding through US banks, because the CIA is bringing pallets of cash to them anyway.