On-chain transaction monitoring for AML - how deep do you go?

Hey everyone, still trying to wrap my head around the specifics of crypto AML. For those of you dealing with on-chain transaction monitoring, how granular are your expectations for tracing funds through multiple layers of mixers or privacy coins? Is the expectation to track every hop, or is it more about flagging patterns and source/destination addresses? What's the practical limit before the juice isn't worth the squeeze from a regulatory standpoint when dealing with something like Monero?