It's a tool used by Governments and centralized exchanges
I totally agree with you, but just think in this, there are member in this forum on signature campaigns that need some income and they need to cashout that money to use in a daily basic spends. I hope none of them have problems by sending their balances to those CEX.
I've reading a lot histories of people who get their balance frozen for months.
In conclution if yuo aren't going to cashout your crypo then you don't need to worried about AML reports, but if you need to cash it out badly then you need to try to check that balance before get it frozen on those Exchanges