It's actually hard to understand how America has this problem because it was the USA that basically invented the concept of "know your customer" and the modern

It's actually hard to understand how America has this problem because it was the USA that basically invented the concept of "know your customer" and the modern anti money laundering system in the 60s and 70s. Failing to do KYC is supposed to be a serious offence that can lead to jail time. So how is it possible that banks routinely don't know their customer sufficiently well that identity theft is a real problem?