Germany: Video identification only as a fallback: EBA is shifting to eIDAS

The identification of contractual partners is one of the key obligations in anti‑money‑laundering (AML) compliance. In addition to traditional personal identification, digital methods have become established in recent years, most notably video identification. In this process, a customer’s identity is verified in real time via video transmission by visually checking identification documents and comparing them with the person present on screen. The German Anti‑Money Laundering Act does not prescribe any specific identification method, but requires reliable verification of identity in accordance with legal due diligence obligations. Video identification is therefore generally recognized by many AML supervisory authorities in Germany, provided that it is designed in such a way, both technically and organizationally, that it ensures secure identification and is embedded within an effective compliance framework (see also: Video identification and liveness checks in the financial sector, and: Remote identification – Possible procedures under the German Anti-Money Laundering Act).

Previous supervisory practice in Germany

In Germany, the use of video identification procedures has so far been shaped primarily by BaFin’s administrative practice. BaFin Circular 3/2017 (GW) sets out the supervisory expectations for conducting such procedures, including the requirement of a continuous real‑time video chat, the use of trained staff, and technical measures to prevent manipulation. However, these guidelines do not constitute an independent legal basis, but merely clarify the requirements for the proper implementation of anti‑money‑laundering duties.

BaFin is responsible for money‑laundering supervision only for companies in the financial sector in Germany. Nevertheless, many, though not all, supervisory authorities responsible for other sectors have adopted BaFin’s administrative practice in this regard.

The new EU Anti-Money Laundering Regulation and the role of the EBA

The new EU Anti-Money Laundering Regulation (AMLR – see also: EU AML Package – a new adventure begins), which will be (almost) fully applicable from July 10, 2027, will further harmonize the anti-money laundering framework across the European Union. The Regulation replaces large parts of the existing national rules and establishes a uniform European system of due diligence obligations. The European Banking Authority (EBA) plays a central role in this process, having set out its expectations for the future design of identification procedures in response to the European Commission's “Call for Advice.” In doing so, the EBA is performing preparatory work for the new EU Anti‑Money Laundering Authority, AMLA.

In its opinion EBA/REP/2025/35, a consultation paper on the implementation of the new EU anti-money laundering requirements, the EBA follows the approach taken by the Commission, according to which electronic means of identification under the eIDAS Regulation are to become the standard for remote identification going forward. The eIDAS Regulation governs secure electronic identification across Europe and defines which digital identity means are recognized as particularly reliable. This makes it clear that eIDAS-compliant procedures will be the norm in the future, while other remote identification procedures will only be permitted as supplementary options.

The new role of video identification procedures from 2027

Against this backdrop, the EBA emphasizes that video identification procedures will continue to be permitted under the AMLR, but only as a narrowly defined fallback option. According to the Draft RTS on Customer Due Diligence (RTS CCD), recourse to video identification is only permissible if an eIDAS-compliant solution is not available, is unreasonable, or would be disproportionate, and provided that all safeguards set out in Art. 6(2–6) RTS CCD are observed. These safeguards include enhanced technical security requirements, measures to prevent misuse, and particularly thorough documentation of the identification process.

In practice, it can be expected that the conditions for such a fallback scenario will rarely be met. As user-friendly eIDAS-compliant procedures, such as app-based ID checks via NFC or the online ID function, become increasingly widespread, the scope of application for video identification is likely to decline significantly. The AMLR therefore does not impose a formal ban on video identification, but it does substantially limit its practical relevance.

Practical implications for obligated entities

For obligated entities under the GwG, particularly credit institutions, this means that existing identification processes must be reviewed promptly and aligned with the new European requirements. From 2027 onwards, the implementation of eIDAS‑compliant solutions will become the standard. Video identification may only be used in duly justified exceptional cases and must then meet the heightened requirements set out in the RTS CCD.

The European realignment underscores that identification procedures must not be viewed in isolation, but rather as part of a comprehensive, risk‑based, and dynamic AML compliance system. Companies should therefore begin the technical and organizational transition at an early stage in order to operate in a legally compliant and user‑friendly manner from 2027 onwards.

Authors: Johannes Wirtz, Chantal Raab