Draft bill GwVideoIdentV

For a long time, the use of the video identification procedure (also known as "Video-Ident") as part of the KYC process was not clearly enshrined in law under the Money Laundering Act. Instead, BaFin Circular 3/2017 (GW) still regulates the use of the procedure in the financial sector, which is also tolerated in the non-financial sector with a few exceptions. The video identification procedure is one of the most relevant remote identification procedures in practice.

Legal anchoring of the video identification procedure

In April 2024, the Federal Ministry of Finance (BMF) published the draft bill for a "Money Laundering Video Identification Ordinance (GwVideoIdentV)". The revised version of the Anti-Money Laundering Act of 23 June 2017 already created the power to issue an ordinance to regulate other suitable procedures for verifying identity under money laundering law. This has not yet been utilised. The GwVideoIdentV could now clearly and uniformly enshrine the use of the video identification procedure in law.

Extended requirements and possibilities through the draft regulation

In principle, this should enable all companies whose products and services are subject to the provisions of the Money Laundering Act to use a video identification procedure with legal certainty. If this is to be used, the draft regulation also stipulates that identification using an electronic ID card or similar (eID) must also be offered as an equivalent alternative. It should not be permissible to deliberately induce users to favour the video identification procedure.

At the same time, semi-automated identity verification procedures should be permitted, provided that direct human verification remains part of the process.

Fully automated procedures may only be trialled by credit institutions and under special conditions. The trial may last two years and may only take place if the Federal Office for Security and Information Technology (BSI) has not ruled out a comparable level of security to the non-automated video identification procedure. After the trial phase, the BSI must decide on application whether the procedure may continue to be used and whether it has an appropriate level of security.

You can find the draft bill and the associations' comments here: Ordinance on Money Laundering Identification by Video Identification (Money Laundering Video Identification Ordinance - GwVideoIdentV) - Federal Ministry of Finance - Service