1. They have confirmed, empirical evidence for the existence of souls
2. The general public is perfectly OK with the destruction of the soul as a form of punishment (Source).
Two words: Polyjuice prostitutes.
You know that girl you've got a crush on? Just find a single hair and some polyjuice potion and voila! Have a prostitute drink some polyjuice for an hour of fun with anyone. And you know there is a black market for that sh_t. Lockhart probably sells a few clippings a day for a thousand galleons a pop (Source).
You could never really be sure if you've ever been a victim of a memory charm. Like Hermione's parents at the end of the series. That was creepy as f_ck. But that was quite advanced magic. Wiping memories is easy, altering them is much harder. Hence the need for the Ministry to have a whole department of experts on it (Source).
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