alt Hacker NewsThat's pretty much how KYC works. The government can't just willy nilly demand papers of everyone going into the bank to open up an account due to the 4th amendment. So they just make the bank do it so it is a "private" act, and then for instance IRS is authorized to do warrantless seizure on the accounts which are now tied to names that were forced to be revealed under KYC laws.
The government doesn't need a warrant to access bank records, as per the US's banking laws. They just need an administrative subpoena, which doesn't have to be signed off by a judge.
This is not and example of the government sidestepping laws through a third party. You just don't like the existing laws, and would prefer to make certain things illegal that are presently legal.