He could be planning to use the accounts KYCed using strangers' documents for criminal activities such as money laundering, transferring and trading off stolen funds etc. and once law enforcement starts tracing the owner of the account. It will be the person who solder their documents who will end up getting traced and not the actual criminal.
Many people live in ultra-authoritarian countries where any words against the state is a crime and if your name added to the "list of terrorists and extremists" you can't even use bank account in any bank.
In some countries like China do exist millions of so called "unregistered children" who of course cannot pass KYC even without being added to "state adversaries" lists.
All of these people cannot pass any KYC without using fake, stolen or bought IDs of another people.
From my point of view, it is absolutely ethical to use stolen IDs from state officials, because they participate in state violence and deserve no mercy!