We suffer far too many regulations which "seem like a good idea" to some bureaucrat, without proof. The money laundering rules have led to few convictions, they do not work.
The paperwork required to open a new bank account is a substantial burden on banks and individuals. It should be removed unless it can be proved to make a real difference to money laundering. It would be easier to restrict the amount of cash payable into a bank account to control black and grey market transactions.