[desdiv]

>If an AML flag is triggered, or there is reasonable suspicion, they have to report it and are barred from telling you that you've been reported.

Completely agreed.

>Kick you out as a customer would be a great way to undermine the whole AML thing.

This is where I think you're overreaching. Do you have a source on this? AFAIK closing an account isn't against any AML legislations. There's no onus on the bank keep a suspicious account (whether it's AML related, Bitcoin related, or just because the bank manager didn't feel like serving this account was profitable proposition anymore) open even when it's against their financial interest to do so.