This is a new way for criminals to bank. If they don't have to show ID, a criminal can claim that he/she is illegal (if they speak Spanish or another foreign language [think Arabic or Farsi]). This could be used to circumvent the Patriot Act rules on banking. It is a Really dumb loophole.
You're right, but I'd go even further, it is a huge national security risk. It's like these banks are saying "terrorists and drug dealers please, oh please bank with us, we want your blood money." DHS should shut this practice down, now.