If anything it could help legal immigration. There's a bootstrapping issue where you need a utility bill to open a bank account and a bank account to get paid and get paid to pay the utility bill. And also need all 3 to rent a property to live in. You can choose the right providers to work around that with just your passport, but that involves a bit of work and research.

No idea how that would solve anything illegal though and realistically, I don't think they do either.