The Indian Government trusts no one and will make 99% of Indians jump through all kinds of hoops like KYC, getting bank letters, stamp paper documents, notarized documents to supposedly avoid such problems. And then they find out all the bureaucracy they put in place was rendered useless because the 1% bad actors know how to leverage that same bureaucracy to beat the system.
The American Govt trusts everyone and lets them go about their business and self report while keeping the option to audit or selectively target the bad actors. Its why foreigners love to start businesses in the US. Its so refreshing.