AFAIK, modern KYC (or at least, pre-2001) traces back to the 1980s and war on cocaine, when Treasury-relevant amounts of money were flowing across borders. It

AFAIK, modern KYC (or at least, pre-2001) traces back to the 1980s and war on cocaine, when Treasury-relevant amounts of money were flowing across borders. It was decided it was easier to trace the money than the drugs.