Well, there's OFAC, for one. In the U.S. alphabet soup, that's the Office of Foreign Asset Control, and they maintain the master sanctions list operated by the Federal government. This is a list, that as a matter of law, must be checked against every transaction. If there is a match on the receiving end of funds to a sanctioned individual, the transaction is immediately halted. If a sanctioned party is the originator, a flag may be raised for the institution to deal with otherwise. You do not want to end up on that list, because if you do, the U.S. financial system turns into a roach motel. Assets flow into the custodianship of the service provider, but are unable to move out. A very highly controversial feature to have implemented if I dare say so myself. Then there are the SAR's and CTR's, which are reports that must be filed by banks in the event of "suspicious activity". I.e. structuring, withdrawal of large amounts of cash, etc. They are specifically prohibited from informing you as a customer about these processes.

Then there's the risk department integration. It is mandatory to hand over transaction information on request by law enforcement. The process is mandatory, and continued licensure is conditional on maintaining a program through which financial surveillance can be conducted by the State.

Now, are these features inherently bad? No. Not at first blush. Do they have the potential to become horrifying? Well... Look at what happened to the ICC judge who got added to the sanctioned entities list. It doesn't just effect bank accounts. It involves anything that you engage in a digital transaction to maintain access to. That means entire sectors suddenly go from situation normal, to persona non grata, your business is not welcome here, at threat of massive fines for doing business with a sanctioned entity.

I went into finance looking for a boring, uncontroversial line of work, and came out after a few years realizing the entire sector is so damn wired for power projection it's not even funny. Once you see it and understand how the bounds of what you can do are constrained by these people who are authorized to digitally transact on your behalf... Well... It can't really be unseen.