Financial institutions don’t have incentives to deeply scrutinize all money transactions. If it entails some sophisticated trades with different financial inst

Financial institutions don’t have incentives to deeply scrutinize all money transactions. If it entails some sophisticated trades with different financial instruments backed by some complex setup of involved parties, then it means that doing a deep due diligence would cost them a lot of money. So of course many financial institutions would just do the standard due diligence, the one for which they have a justifiable cost of business. It’s cheaper to pay one penalty that could or couldn’t come, than to scrutinize your customers and their transactions. That’s why they are losing the war against money laundering. Because the only laundering that is being caught, is the petty one. The one that doesn’t matter. Paradoxically billions of dollars are invested in catching this type of money laundering. It’s the exact same problems of tax evasion. Same reversed incentives, same functional behavior. You could almost say that the money laundering and tax evasion are symmetrical problems.