When it comes to AML-KYC it's not about knowing Your Customer. No it's about documenting your customer and sharing that information with people who are not interested in the success of your business or your customer. If anything, your business failure is their goal because they get paid by enforcing and if they have nothing to enforce they get paid anyway.

As a further point the government can launder money, sell drugs, kill, poison, assassinate and many other immoral behaviors through government employees.

Even if they come up with a universal identification all operatives with government organizations will have fake identifications and layered security that identifies privileged accounts. To make matters even more interesting, and to educate tax payers, voters and slaves, the largest employers for most countries is the government.