Is it really though? How much was the US (or any other equally developed country) losing to crime and corruption prior to all this KYC/AML BS? Not that much. Letting a mobster have a bank account doesn't magically turn your country into Nigeria. If anything it makes your country better because the mobster doesn't have to store that value another way and then protect it (with violence). >Criminal enterprises work through violence and add risk throughout the economy

So like government but with less abstraction?

> But unlike criminal gangs, they don't settle them with shooting wars in the streets.

Only because they don't have to. Being an above the table enterprise they can just go to the government court system and get their (credible threat of) violence that way.

All this violence you're complaining about w.r.t. organized crime is just their (low buck, because due process and diffusion of responsibility sufficient to dissuade revenge are expensive) way of settling business disputes.