I don't agree with what you've said about being able to buy Bitcoins if you had a significant sum of money.
I define significant here as $50,000 or more.
It is not easy to buy BTC in cash through LocalBitcoins. I know first hand how intimidating the process is (even after the 10th time) because you don't know who you're meeting and what their intentions are. Secondly, there aren't a lot of people willing to transact $50,000+ in BTC. This is usually a supply problem as these people don't have hundreds of BTC to sell.
Using third party accounts is also silly as that leaves a paper trail. If any of your cash goes through someone else's hands, it is most likely recorded.
To take this further with your 'solution', you can't simply convert this significant sum of money into local currency easily. There is still going to be a paper trail of you converting the money from BTC and if you have done any selling on exchanges, you'll know you need your identity verified.
If I were someone shady, I would NOT turn to BTC to launder my money, it doesn't make a lot of sense.
People often confuse cryptocurrencies and BTC in general with being totally anonymous. They're not.
I define significant here as $50,000 or more.
It is not easy to buy BTC in cash through LocalBitcoins. I know first hand how intimidating the process is (even after the 10th time) because you don't know who you're meeting and what their intentions are. Secondly, there aren't a lot of people willing to transact $50,000+ in BTC. This is usually a supply problem as these people don't have hundreds of BTC to sell.
Using third party accounts is also silly as that leaves a paper trail. If any of your cash goes through someone else's hands, it is most likely recorded.
To take this further with your 'solution', you can't simply convert this significant sum of money into local currency easily. There is still going to be a paper trail of you converting the money from BTC and if you have done any selling on exchanges, you'll know you need your identity verified.
If I were someone shady, I would NOT turn to BTC to launder my money, it doesn't make a lot of sense.
People often confuse cryptocurrencies and BTC in general with being totally anonymous. They're not.