Canada    FinTech Guide    Chapter 11    Germany

11. Identification
Germany  Germany

The identification market is an established market. FinTechs services in this business area are made used of by other FinTechs or credit and financial institutions.

Legal Affairs

With regard to the identification of the customer as the main “Know Your Customer” – element (KYC-element) the German money-laundering act (Geldwäschegesetz – “GwG”) and the circular 3/2017 (GW) for video identification procedures by the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – “BaFin”) have to be complied with.

According to the GwG there is the possibility for obliged parties, escpecially credit and financial institution, to delegate the fulfillment of the due diligence requirements to third parties via a data processing contract, especially with regard to the identification process.

The third parties don’t need any license to conduct their identification service.

With regard to the collection, storage, modification or transfer of the data retrieved during the identification process the Federal Data Protection Act (Bundesdatenschutzgesetz – “BDSG”) has to be complied with.

Economic Conditions

The main identification services provided by third parties currently are video identification services or identification through post offices (Post Ident).

Contributing Authors

Schalast Rechtsanwälte mbB

Andreas Walter
Frankfurt, Germany

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Chapter Index:

1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018