> these laws are largely ineffective at stopping actual money launderers.
Let's think about what the purpose of money laundering laws is. Nobody really cares about people concealing the source of their income in the general case. There's no purpose for money laundering laws just for that purpose alone.
The reason that money laundering laws exist is that one way to discover and prosecute crimes that people actually care about (human trafficking, drug dealing, various kinds of fraud, terrorism) is to "follow the money", and if criminals can successfully launder their money, it makes it easier to get away with their criminal activity.
The second reason that it exists is that money laundering _itself_ is often a much easier crime to prosecute than the underlying offense is. What KYC and AML laws do, and are extremely successful at is _not_ preventing money laundering. That would actually be undesirable for prosecutors! What KYC and AML laws do is allow people to money launder while creating a wonderful paper trail for prosecutors to follow and build a case on when they take an interest in someone from crimes they actually do care about. Chances are if you are money laundering, you have at some point lied on a banking form, which is a prosecutable crime, and a lot easier to prosecute than drug dealing and other crimes are, sometimes.