I work in the industry and this is an absolute necessity. If the average citizen saw the volume of fraud and attempted fraud on a daily basis, they would be beyond shocked. The scrutiny is the result of changes in the laws over the past decade.
The limit for reporting is $10K. It's not the $50 grandma wants to put in the Christmas Club account. Have you ever walked into a bank with $10,000 in cash? $9500 in cash? Do you want to know what those people look like? Just watch breaking bad. How many folks are depositing that kind of $$ on a weekly basis? Daily basis? Not many legitimate people. It's a new world and cash transactions or wire transfers are now under question, with good reason.
You also can't deposit into someone's account anymore, unless you are a signer on the account. I had a man complain the other day that he could not put $100 in his grandson's account because he was not a signer. When he asked what gives a bank the right to do that, I had to spend 30 minutes explaining the CFPB, Dodd Bank and the Bank Secrecy Act.
Talk to your Congressman, and he will probably tell you the same thing I did.