Money laundering is a significant problem, with illicit funds being moved across borders to evade detection. Traditional Anti-Money Laundering (AML) processes are failing to address the scale of the issue. One recent case highlighted the importance of proof of address compliance. An address in Hong Kong linked to two scam website clusters was found to be on the U.S. Treasury's OFAC list for ties to terrorism. This raises questions about how scam merchants are acquiring the ability to process payments despite their physical address being on the OFAC list. Knowing Your Customer (KYC) compliance is crucial, but this case exposes egregious failures in acquiring banks and payment processors. Despite routine checks leading to better outcomes, basic AML violations are being missed. The potential for money laundering may increase with a more friendly regulatory environment for cryptocurrencies. Banks and processors are gambling by allowing anyone to obtain merchant accounts with little to no compliance checks. GenAI offers a solution with semi-autonomous agents trained to flag AML violations and elastic agents that deploy on demand for new merchant applications. These agents can assist AML compliance efforts and mitigate fraudulent merchant transactions.