While cash is not practical today, Money Laundering is still happening. I'd say the current regulation does little to nothing to stop it.
Think of the experiences you described in your comments. They almost always happen when you make/receive money from certain jurisdictions (third-world, not necessarily a money laundering location). The West, in the last few years, has become less competitive. This switched the money flow which was predominantly from third-world to west. Most of the money laundering happened in the Western countries in the past. (think dictators moving their monies to European capitals to buy real-estate).
Now that the flow has flipped in favor of the third-world, the West has decided to "stop" the flow. The lower taxation rate in these countries makes this worse. The exception is the US. They weren't a favored location before but they figured they could pick up where Europe left off. And FATCA made it easier for them.
Think of the experiences you described in your comments. They almost always happen when you make/receive money from certain jurisdictions (third-world, not necessarily a money laundering location). The West, in the last few years, has become less competitive. This switched the money flow which was predominantly from third-world to west. Most of the money laundering happened in the Western countries in the past. (think dictators moving their monies to European capitals to buy real-estate).
Now that the flow has flipped in favor of the third-world, the West has decided to "stop" the flow. The lower taxation rate in these countries makes this worse. The exception is the US. They weren't a favored location before but they figured they could pick up where Europe left off. And FATCA made it easier for them.