What could potentially happen if Chioke did not provide the required identification during his purchase?

If Chioke did not provide the required identification during his purchase, the most likely outcome is that his account could be opened but not funded. This is due to the regulatory requirements that financial institutions must adhere to when onboarding new clients. Identification is a critical component of the Know Your Customer (KYC) regulations, which mandate that firms verify the identity of clients to prevent fraud, money laundering, and other illicit activities.

When the necessary identification is not presented, a financial institution may proceed with opening the account to some extent, such as creating the account in their systems. However, they would typically be unable to complete the funding process until the identification is provided. This prevents funds from being deposited into an account that cannot be fully verified, thus safeguarding both the institution and the client from potential risks associated with unverified transactions.

This scenario highlights the importance of compliance with identification protocols to ensure that all client transactions are valid and secure.