This sounds like the system is working as intended. Banks are encouraged to report suspicious activity, and are encouraged to take a fee on the transactions they report as suspicious. This gives the government the info it needs to engage in prosecution and gives the banks a financial motivation to report the suspicious transactions. The report makes this obvious legislatively driven outcome sound like some sort of evil-doing complicity with villains on the part of the banks. Is there something more deeply malicious on the bank's part here than simply behaving in the way anyone reading the legislation would expect them to behave?