In April 2017, BaFin published a new circular on the requirements for the use of video identification procedures.¹ It replaces the guidance given in item III of Circular 1/2014 (GW). According to the new circular, the video identification procedure may be used by all entities obliged under the German Money Laundering Act (Geldwäschegesetz) that are subject to supervision by BaFin.

The circular is intended to ensure secure identification and prevent criminal offences. The requirements for video identification procedures should accommodate customers' calls for seamless identification procedures. At the same time, they should meet the needs of the competent police authorities (police, state offices of criminal investigation) for sufficiently reliable verification of the identity of natural persons pursuant to the Money Laundering Act.

In particular, the circular lays down additional requirements for the technology used in the procedure and for examining the necessary security features. These include end-to-end encryption according to certain criteria.

Under the new circular, an identity verification using a video identification procedure can be performed on the basis of all domestic and foreign identity documents that have a machine-readable zone and contain sufficiently tamper-proof and verifiable optical security features in different categories.

Video and audio recordings of the entire video identification process, in all its individual steps, must be made and retained for five years in a manner that permits verification by internal and external audit and by BaFin. This also applies to photographs and screenshots of the person to be identified and of their identity document. The person to be identified must give their explicit prior consent to this procedure.