That’s a problem with your bank, not with the regulation. They decided how to implement aml, and it sounds like they’ve done a bad job and can’t deal with internal organizational barriers.
OP is not likely to be able to change KYC/AML laws, nor is the homeowner likely to be able to prevent the region from flooding, but they might have some effect on the bank (or could choose another one) if others implement those laws in a more efficient or effective way, just as the homeowner could upgrade their house to handle the regional flooding more effectively, or choose another house that did.
If your bank does something way outside required checks, you can switch banks. There are many.
That said sucking with one can (and logically should) make KYC checks easier over time.
Regulators are NOT providing any feedback whatsoever to already filed SAR filings, nor are they clarifying their AML policies.