I feel like you're missing the circular logic of your argument. The laws are crazy because banks will not self regulate. They openly allow illicit funds, so rules need to be applied to stem the source.

None is blaming them for accepting funds from anyone that they come across, but there should be no confusion as to why the rules exist: because the banks will indiscriminately allow the transfer of funds from illegitimate sources.

With that in mind, the rules are crazy, because the banks don't care.