Anti-money laundering is very limited tool. Everything people say about preventing terrorist financing is fake, AML techniques only let you notice and interrupt abnormally large flows of money. Terrorists are funded in little bits by westerners, and by rich Arabian friends. The extent of anti-terrorist financing is basically that known terrorists are not allowed to have bank accounts.
We could use these tools better if we didn't allow workers to remit money to their families in mexico, if we cracked down on Hawaladars. They only like enforcement against crypto bros exchanging too much money at a time.
AML is an industry in a clear constant state of failure because the drugs are still getting sold and the money is getting laundered. If the money were actually dead weight, unspendable? If cartels had to lose 90% of their profits in cleaning, they would at least have a hiccup where they can't afford payroll.
