[ethbr1]

I think the ideal would be private banks enforcing exact legal rules (no fuzzy matches) and forwarding edge cases to the authorities (but not blocking them). All with transparency.

You don't want private banks in the business of fuzzy-matching (because they'll default to over-cautious, and it empowers the government to exploit grey areas to pressure them).

And you don't want the executive arm of the government too involved in day-to-day financial inspection (because executive can move at the speed of an edict, versus needing a law).