We still have memory, it is just not visual. I forget what they call it, I think it is structural memory. But yes, we certainly laugh. It is only visual memory loss, not memory loss.
The only test they have somewhat developed is a pupil test. When you tell someone with Aphantasia to imagine an apple their pupils do not change.
https://www.sciencedaily.com/releases/2022/04/220420092150.h...
Aphantasia is about the mind's eye, not visual memory. Many people with aphantasia can still remember visual/spatial details of memories, they just can't see them. Not sure if those had to be recorded at the time of the memory or if they can be derived later, though. Based on some cursory research, it's not particularly uncommon for aphantasics to build a habit of intentionally making spatial observations in the moment for potential recall later.