Put fear into friend holding papers (10)
I believe the answer is:
intimidate
'put fear into' is the definition.
'friend holding papers' is the wordplay.
'friend' becomes 'intimate' (intimate is a kind of friend**).
'holding' indicates putting letters inside.
'papers' becomes 'id' (identification papers).
'intimate' going around 'id' is 'INTIMIDATE'.
(Other definitions for intimidate that I've seen before include "Strike fear into" , "Frighten" , "Bully" , "Scare" , "Threaten" .)