You are incredibly incorrect on that assertion. There is, in fact, a centralization/dictatorial dynamic at play, and it's called the Bank Secrecy Act.
Now it doesn't read like it, which most acts of american legislature don't, but on further observation of what it actually does, the intent becomes clear. There is one financial system in the U.S., you will play by it's rules or be excluded, it won't tell you why, it will not be a dumb pipe either. It is directly coupled to law enforcement, and the Federal Government, and yes, there is a Master list that if you get on it, will lock you out of withdrawing from (but not depositing into!) every U.S. bank.
Part of why I no longer do finance work. Once you see how the sausage is made, there is no shower hot enough to slough off the slimey feeling.
> If the bank has filed a SAR, it isn’t legally allowed to tell you, and the federal government prosecutes only a small fraction of the people whom the banks document in their SARs.
Sounds worryingly similar to an effective violation of habeas corpus ?
P.S.: To make the matters worse, it looks that trying to rely more on cash as an insurance against getting debanked, raises your risk of getting debanked !
the problem is that banks can't handle this requirement well. if they think something is suspicious, sure file the SAR/CTR, and then if they think there's a need for KYC, tell the customer that. the customer provides information about the transaction, the bank then can chill the fuck out. if this keeps going on they can eventually tell the customer that okay, it's too much work for them, please close the account in 1 month.
but no, they immediately switch into this crusader mode, because it's just easier for them, and customers have no recourse.
Whatever happens to you is fine and dandy as long as it doesn't happen to them... and it probably won't happen to them.
Until it does ... at which point they'll scream "Bloody Murder!" and ask "How could this happen to me?"
Reminds me of that D.A. that walked into a bank during the covid masking era and ruminated that they'd locked up people for less. I'm unsure if they changed their tactics or whatever because of this.
Most people grant these powers to the government hoping to get their pet peeve taken care of, and are surprised when the government not only doesn't do what they promised, but turn those powers onto its own favorite victims instead.
https://en.wikipedia.org/wiki/The_Origins_of_Totalitarianism