Put the flag of North Korea into the notes of a venmo transaction. You will very quickly find out the extent to which the government knows what you are doing with your money.
Thats actually a private corporation having an excessively skittish interpretation of federal regulations.
The government would still need to go out of their way to know about that transaction. And the liability would only come after you or the organization got in trouble for something else.
which once again has nothing to do with the government and everything to do with Venmo incorporated (Paypal Inc.) choosing to operate that way out of fear of the government
Current finance laws are such that if PayPal stopped having this kind of fear of the government it would likely go under. It's just a loophole to get around the 4th amendment.
