The correct response is to prove this a clear scam. Don't just say it.
EX1: All those reporting requirements for public companies.
EX2: Credit checks before you get phone / internet service / rent an apartment etc.
EX3: Passport check at the border.
EX4: Metal detectors at sensitive locations.
EX5: Professional certification requirements for Doctors etc.
EX6: FDA
ect ect.
PS: There are also a lot of hidden ones such as the dress code at many nice restaurants which significantly reduces people dine and dashing. And camera’s at gas stations. Or even just locked doors.
He has clearly succeeded at that.