How to verify a German citizen

Germany’s IT and telecommunications sector is expected to reach224.3 billion euros in 2024.With the tech sector representing more than 100,000 companies, the potential risk of data breaches can be detrimental. This article will discuss Germany's primary regulatory bodies and the strong standards introduced to prevent damaging data breaches within this industry and protect customers' identities.

Financial Action Task Force (FATF) Status

Germany has been amember of the FATFsince 1990 and an observer to the Eurasian Group (EAG), Asia/Pacific Group on Money Laundering (APG), and the Financial Action Task Force of Latin America (GAFILAT). According to the most recent evaluation in 2023, Germany was deemed Compliant for 17 and Largely Compliant for 20 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 4 of the Effectiveness Compliance ratings.

Regulators

European Union (EU)

Germany has been a member of the EU since 1 January 1958, with 96 German members in the European Parliament. TheEU’s goal is to maintain sustainable development based on balanced economic growth and price stability, a highly competitive market economy with full employment, and establish an economic and monetary union whose currency is the euro.

Eurasian Group (EAG)

In July 2020, Germany joined theEAGobserver states list. The EAG is a FATF-style money laundering and terrorist financing regulatory body. This regional body comprises of nine countries: Belarus, China, Kazakhstan, Kyrgyzstan, India, Russia, Tajikistan, Turkmenistan, and Uzbekistan. EAG is an associate member of the FATF.

Bundesanstalt für Finanzdienstleistungsaufsicht  (BaFin)

BaFinis a public body operating to ensure the German financial system’s proper functioning, stability, and integrity. Their goal is to prevent the misuse of the financial system for money laundering, terrorist financing, and other criminal offenses, which can threaten an institute’s assets. Bodies in the financial sector are subject to the money laundering supervision of BaFin, include not just credit institutions, financial services institutions, and payment institutions, but also life insurance undertakings, German asset management companies (Kapitalverwaltungsgesellschaften), and persons and companies that sell or convert e-money. BaFin is the only competent authority in this field.

Deutsche Bundesbank (German Federal Bank)

TheDeutsche Bundesbank responsibility is to ensure monetary and financial stability. A few of the Bank’s functions are to make decisions on the monetary policy, carry out foreign exchange operations following the Euro-system,cross border payment regulation, note issuer,  and many more.

Relevant regulations

The German KYC regulations are based on the provisions of the European Union and FATF.

The AML ACT or theGeldwäschegesetzin German is the most commonregime. The act states that transactions are subject to different identification and reporting requirements, with penalties resulting from non-compliance. These vary from a simple proof of identification (for individuals) or a physical/electronic record of the company to simple or enhanced due diligence, depending on the risk. For example, Politically Exposed Persons (PEPs) are always subject to an enhanced due diligence process.

The reporting is made to the Criminal Investigation Department of the relevant state and to the central Criminal Investigation Department of Germany (Central Division for Suspicious Activity Reports (Financial Intelligence Unit FIU)).

What German ID documents can I verify?

Any German citizen can be verified using government, commercial, or credit data sources. Based on the documentation verified against the data sources, the name, date of birth (DOB), nationality, and address can be validated.

German citizens can be verified using the following documents:

National Identity Card

Germany’snational identitycard meets the highest requirements for document security. Its tough security features offer a high level of protection for the data and digital photograph stored on the chip. Its biometric function can be used only for official checks at national borders and within the country to verify the card holder’s identity. Cardholders may also choose to store two fingerprints on the chip as well. It can verify nationality, name, surname, place of birth, date of birth, holder’s picture, and two fingerprints.

Passport

The Federal Printing Office in Berlin issues the Germanpassport. Passport applications along with fingerprints have to be submitted in person at the Embassy or Consulate-General.  It can verify the holder’s nationality, name, photo of the passport holder, passport number, surname, gender, place of birth, DOB, and fingerprint.

Driver Licence

The Führerschein or the German driver’s licence is issued by the authorised local driving schools. You can verify your customers’ names, gender, DOB, licence number, and nationality.

AML Screening

In addition to verifying ID documents, AML screening can be conducted on German customers, ensuring compliance with the regulatory bodies mentioned before.

Data Zoo's access to global watchlists can identify if German and other European citizens are high-risk individuals or entities byscreening your customers’against PEPs, Sanctions, and adverse media lists.

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With Germany's continued presence in digital financial services, now and into 2025, companies needing toverify the identity of German citizensmust ensure their data is accurate, reliable, and compliant with the regulators.

If you need to verify German nationals,see how Data Zoo can help.