Do you have evidence on KYC/AML/CFT being in a state of regulatory capture? I would say they are anything but. Huge expenses for all involved, no standards that

Do you have evidence on KYC/AML/CFT being in a state of regulatory capture? I would say they are anything but. Huge expenses for all involved, no standards that would be good enough to just fulfill. What we have observed is financial institutions failing with respect to KYC/AML/CFT/sanctions etc. (and getting fined for it), but that is not regulatory capture. Also, I'd argue that since 2008 regulatory capture isn't working so well anymore, with a lot of extra regulation being thrown at the system (some of which being eased now again). Regulators are incentivized to see dangers everywhere and acting accordingly. The last time they did not see dangers everywhere, it didn't work out so well, either. The counteracting force would come for electorates and policy makers seeing opportunity and progress lost from being overly cautious.