I'd say go ahead and report it. If it's an issue that's to close to trouble, it'll get told to reroll. If it is some sort of mix up, it should be ok to pass.

But it's really not your position to judge either way, so it's no your fault if the person is seen as breaking the ToS agreement. If you find it to be questionable and suspicious, pass it along and let those with the authority to make those judgement calls do so.

Better that, than to let a troll keep trolling because he's skirting ethnic lines as a shield. That would be even worse.