As an example... before I took over one of my classes there was a guy who reached brown belt there, much the same time as I did. He could perform to the standard for his grade, but when I took over the class I threw him out for sexually harassing one of the students.
This was some 2-3 years ago, so he's been a brown belt for that time. He could write to, say, this world MA college, and say he was the victim of politics (this guy still maintains that he was doing nothing wrong). I don't actually believe these people do any checking at all, never mind what they say about reputable organsiations and such.
So he claims he was edged out due to politics, has been trainng since and is ready for BB or 3rd Dan or godhood or whatever, and these people give him a grade. He sets up a class.
Now here's me with enough evidence on this guy to prosecute for several criminal offences (We were preparing a legal case if it came down to it. Witnesses, evidence etc are still Condition One). Point is, suppose one day I find he's teaching a class. What then? Are these people who gave our man his black belt prepared to back him up if I decide to take the legal route to get him closed down? Or will they say 'nah, we just sold him a grade. We're not responsible'.
If it comes down to it... if they sell an instructor level grade to someone without doing any checking and that person gets prosecuted, then I wonder what their position will be. If they can't answer that, well, I won't be surprised.