Of course if you have root, you can make other programs work as you please.
They need to go further to outlaw hide root apps, and then install special app to track the status of the phone to make sure it is not rooted. Then allow police to randomly check the presence of this app on people phones. Every phone needs to be registered and pass hardware inspection every year. Even better, make so called offices where people can come and deposit or transfer money, it will be super safe.
You jest but governments will not even think before doing stuff like this. The recent "Sanchar Sathi" fiasco by the Indian Government is an example.
They won't need to do that. Once Google Play Integrity starts using remotely provisioned keys in a few years it will be impossible to hide root without exploiting a hardware or firmware vulnerability.