Unless the rules have been tightened since then, fintechs such as Revolut and Monzo (back when it was a prepaid card) used to open accounts instantly with no KYC with low limits (which they get raised when you pass KYC), so I wonder why they wouldn't just do the same and skip the KYC step altogether.
I imagine accounts setup to help the homeless would make poor money mules.
Sort of the inverse situation making corporate accounts hard to get in Japan. Such an account can receive large volumes of cash without raising red flags.