To a certain extent that was always true in the
Elite games. Even the very first version had a sort of galactic panopticon that registered every kill and awarded bounties or criminal status accordingly. The manual made some reference to ships' cameras transmitting instantaneous evidence to GalCop, but even then we all knew that was handwavium and didn't make any in-game sense. But it was 1984 and gamers weren't so picky.
Part of the problem with
ED is that FD wanted at least two extra mechanisms to come into play during combat. Firstly, unlike classic
Elite where firing on another ship didn't affect criminality unless you destroyed it, they wanted assault penalties to be different to murder penalties. And secondly they wanted some sort of skill-based "dogfighting" mechanic that didn't necessarily involve weapons, hence the KWS.
Even back in the design phase there were people pointing out what a convoluted and impossible-to-rationalise system this was, but FD wanted their dogfighting and so it stayed.
Personally I try to rationalise it as:
- There is a galaxy-wide database of criminals, and the bounties they currently carry in various jurisdictions. This is uploaded to your ship every time you dock.
- The criminal database includes very specific signature information for criminals' ships; unique EM and heat emissions, infrared reflectivity (just like in the Elite manual!) etc. Kind of a 34th century version of the submarine sound library used by sonar operators.
- Basic scanners get simple transponder ID information from ships but this might be spoofed by criminals (even though in-game it never is) and so can't be relied upon for anything other than local bounty claims.
- When you use the KWS, it is slowly mapping the target ship's emissions and matching them to the database. When it has enough data for a unique match, it can reliably display any out-of-system bounties.
It's still very gamey, and there are still "plot holes" e.g. a criminal whould be able to evade capture by switching to, or stealing, a "clean" ship. But IMO it sits more comfortably than a system that interrogates another ship which then somehow gives up information on its own criminality. That never made any sense to me and it still doesn't.