European Passport
Credit institutions, securities trading firms, payment and e-money institutions that are authorised in one country of the European Economic Area (EEA), and leasing and factoring institutions that are subsidiaries of credit institutions may in principle also perform their activities in another EEA member state. Cross-border business may be carried out either by setting up a local branch (freedom of establishment) or by way of the free provision of services (freedom to provide services). The freedom of establishment and freedom to provide services are subsumed under the term “European passport”.
If one of the aforementioned institutions intends to carry out activities in another EEA member state under the freedom of establishment and/or freedom to provide services, the home supervisor of that institution must be notified of this intention.
Outgoing passport (section 24a of the KWG, section 38 of the ZAG)
Section 24a of the German Banking Act (Kreditwesengesetz – KWG) and section 38 of the German Payment Services Supervision Act (Zahlungsdiensteaufsichtsgesetz – ZAG) set out the rules applicable to institutions that are domiciled in Germany and intend to carry out activities in another member state of the EEA either by way of establishing a branch or by providing cross-border services, for example via the internet (outgoing passport).
If German institutions intend to carry out activities in another EEA member state, these institutions must notify BaFin and the competent regional office of the Deutsche Bundesbank of this intention.
Incoming passport (section 53b of the KWG, section 39 of the ZAG)
Section 53b of the KWG and section 39 of the ZAG set out the rules applicable to institutions that are domiciled in another member state of the EEA and intend to carry out activities in Germany either by way of establishing a branch or by providing cross-border services (incoming passport).
Institutions from the EEA must notify the supervisory authority in their respective home country of this intention.
Flowchart Passporting
© BaFin
The following information is aimed primarily at German companies intending to carry out activities in another member state of the EEA. Below you can find the forms which you must use and the contact details, amongst other things.
