Simply require all pilot and licensed engineers to undergo a 'once off' fit & proper person assessment.
They do that now. Just "once-off" every two years.
Any subsequent criminal acts would be notifiable and the FPP could be withdrawn. Ergo, if you are naughty, no more licence.
That's how ASICs already work.
what would likely happen?
The authorities will not let you in. They don't want a fine or penalty either. Then you can't turn up for work and your employer sacks you. It is not the controlling authorities problem you are not wearing your ASIC. It is not your company's problem you are not wearing your ASIC. If you do get in, then you get a fine. The world won't stop. You'll just end up owing money.
government would be forced to intervene
It's the government's process.