If so, then they can't control it because the code is in complete control of the transactions and mathematics replaces centralized authority. The exchanges such as Coinbase have KYC and AML. But the first video has a major flaw in stating the lightning hubs will be operated by the banks. The problem with this is the fact that if you bought your bitcoin from another user and then sent it to an unused address in your hardware wallet, then it has no KYC and AML. You can make assumptions that this is either a new user or a user sending it to another location in their same wallet.

So if these hubs are going to operate as "banks", then when you send a transaction from your hardware wallet whose address has never been used before, they will have to insert a form in between each transaction to collect your social security number, your name, address, etc. Will you fill this form out? Of course not. This puts them back into using imperfect chain analysis tools that can make educated guesses but don't have certainty.

My understanding of hubs so far is a bit different. They aren't supposed to be operated by anybody but represent a pool of assets from many different sources that search for routes to settle direct P2P in the event that one party doesn't have enough bitcoin to settle a transaction between two parties.

It's kind of like this situation. Suppose someone in front of you in line at a convenience store has a 100 dollar bill and you're behind them and they are talking to the merchant who doesn't have enough change for a 100 dollar bill. You overhear the conversation and instead of trading with the merchant directly, what I've done is given 5 twenty's to the customer in front of me in exchange for that 100 dollar bill (plus a 10 cent fee). Then the customer can complete the transaction with the merchant for one of his 20 dollar bills instead. In this situation I operated as a hub. I didn't ask for his name, social security number, phone number, etc.

So the simple solution is this. If you've never provided KYC info on yourself and a node pops up asking for KYC, just say no. There will be other hubs willing to do this for you without it.