It is irrational (and strange, countries in the EU will happily launder your money, some domestic banks still accept suitcases full of cash in the basement but the rage is all directed to US/UK banks where money laundering is almost impossible without blackmailing someone in AML...this happens, but it is fairly rare...and risky because most banks now have teams of people watching their AML staff, following them outside work, going through their emails, etc.).
The solution is simple: remove AML/KYC regulations. Let police investigate and find evidence of crimes. This isn't the job of banks, banks aren't the police, AML departments are basically run as private police departments, and the false positive rate is (unsurprisingly) through the roof. They also don't do a particularly good job with true positives either: some obscure Kazakh politician wants to open an account with $5m...okay, there is no Wikipedia page for him, he has provided proof of income, you suspect it is forged, you call the Kazakh police, they tell you it is legit...it is very hard to get right because you don't have any legal investigatory powers.