> In practice, KYC does little to stop any of that

Source? The fact that it's not infallible doesn't mean that it's ineffective.

Here is a good book on the topic of ineffectiveness of anti-money laundering:

https://www.amazon.com/dp/B0DVLLL1X3?lv=shuf&channelId=500&p...

Podcast if you do not want to buy the book:

https://www.bloomberg.com/news/videos/2026-09-08/odd-lots-wh...

They route through all kinds of intermediaries that handle the banking by proxy — eg, as we saw in the Panama Papers and similar leaks.

Reporting $600 in CashApp isn’t about stopping cartels, terrorists, etc; it’s about harassing sex workers and street dealers, profiling side businesses, etc.