Your Partner for Seamless Integration and Secure Identity Verification

MGT – Your Partner for Seamless Integration and Secure Identity Verification

The German Federal Ministry of Finance is planning an ordinance to create a legal basis for the use of Videoident procedures. This affects financial companies and service providers that are considered obligated parties under the Money Laundering Act, as well as other professional groups such as lawyers, notaries, tax consultants and real estate agents.

The draft sets out how the Videoident procedure should be properly applied, including training requirements for staff, technical standards and accepted identification documents. Although there are already BaFin specifications from 2017, a legal basis was previously lacking. The new draft is intended to fill this gap and provide clear guidelines for those subject to AML obligations. No major changes are expected for banks and financial service providers that already use video ID procedures.

One important innovation, though, is the obligation to also offer identity verification using a digital ID card (eID). Providers of eID services could receive more requests if the draft becomes law, but large ID service providers such as IDnow are likely to continue to be favored. The eID could become more important as a result of this regulation, as it is less complex than the Videoident procedure.

Partially and fully automated Videoident procedures can be used under certain conditions, subject to strict rules. The draft is currently in a consultation stage, in which opinions are being sought from federal states, associations and other organizations. It is questionable whether the draft will become law in its current form and it will be some time before it is finally adopted. However, eID offers a secure online identification alternative by accessing user data stored on the chip of their ID card, ensuring protection during the reading process and access only by certified providers.

Meremus German Technologies (MGT) GmbH provides a range of solutions for these procedures through a single API, ensuring seamless integration and meeting the highest security standards across various industries.

Interested in a conversation about identity verification? Contact Merve Simsek ( or Nikolas Lotz ( from MGT to find out more about how we can support your business.