Re: Money Laundering
I'm afraid you were probably mistaken when you explained that, because paying a ransom is not money laundering. It is a bad idea, unethical, possibly illegal depending on your jurisdiction, and should be made illegal where it isn't now, but even when it is, it's not because of money laundering laws which have nothing to do with the money until the criminals have it and want to do something with it. Similarly, it has nothing to do with know your customer laws because:
1. If KYC laws don't apply to whatever type of business you run, they don't affect you. A lot of businesses don't have those regulations in any case.
2. If they do apply to the type of business you run, they require you to identify those who buy services from you, not ones you pay for their services, illegal or otherwise.
If you were a financial institution and you decided to pay the criminals by opening an account for them and depositing funds, KYC applies. If you are or did almost anything else, they don't. If you actually get to choose between these two options, please pick the former in the hopes that the criminals are stupid and will identify themselves to get access to the funds, making them easier to catch. Paying ransoms is legal in a lot of places, including the auditing and tax implications. It is so legal that cyber insurance companies have specialized in doing it, while if it was illegal they'd be storehouses of perpetrators ripe for law enforcement action. I would like to make paying those ransoms illegal so that this stops, but that hasn't happened yet.
If you think using these incorrect legal arguments is helpful in convincing companies not to pay ransoms, I think you're using the wrong path. We have many examples like this article demonstrating how paying doesn't mean the business gets anything, whether the promise is destroying the data or helping with recovery. We can point to PR downsides of even a successful ransom payment which reduce trust. We can point out the consequences to others of propping up a criminal industry. All three of these options has a major advantage which yours lacks: when they call in a lawyer to review the plan, the lawyer won't be able to say "they misunderstood the laws and this actually isn't a problem".