Why does the current AML/KYC system assume everyone is guilty by default?

Literally everyone has to provide documents for amounts above X dollars. Even if there is no tangible evidence that the funds are illicit in any way.​Have we come to a time where everyone is assumed guilty unless proven otherwise?​This seems like a massive loss of trust to me. Not everyone is a criminal, and not everyone should be treated as such.​It also seems like a massive loss of resources as the vast majority of these transactions are legit. Most people are law-abiding citizens, after all.​And in spite of these extremely tight controls, billions of dollars are still getting laundered (just check the Danske Bank scandal last year). The criminals will simply use fake ID's and fake personas. Do these controls actually prevent anything or do they just waste a massive amount of time and resources?Storing all those documents in a central location is also a massive security risk with huge implications if the place is hacked. via /r/Bitcoin http://bit.ly/2ZHC3Sa