Regulatory Alerts2014-09-26 | Circular 7/2014 (GW) - Scanning fulfils record-keeping obligation pursuant to section 8 (1) sentence 3 of the GwGBaFin Circular 7/2014 (GW): Scanning Identity Verification Documents Fulfills Record-Keeping Obligations
BaFin confirms that scanning documents presented for identity verification under the GwG fulfills the statutory record-keeping obligation. Regulated financial entities, including credit institutions, payment service providers, and investment management companies, must implement appropriate technical and organizational measures to securely store the scanned data. This administrative practice applies to all identity verification documents under sections 4(4) sentence 1 numbers 1 and 2, effectively modernizing compliance procedures while maintaining substantive legal requirements.
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According to BaFin's administrative practice, scanning a document presented for verification of identity pursuant to section 4 (4) sentence 1 no. 1 of the GwG or a document presented or used for verification of identity pursuant to section 4 (4) sentence 1 no. 2 of the GwG meets the obligation to keep a record of the information contained in that document.
Business sign: GW 1-GW 2002-2009/0002
26.09.2014
This circular is intended for: credit institutions, financial services institutions, payment institutions, e-money institutions, agents pursuant to section 1 (7) of the Payment Services Supervision Act (Zahlungsdiensteaufsichtsgesetz – ZAG ), e-money agents pursuant to section 1a (6) of the ZAG , enterprises and persons pursuant to section 2 (1) no. 2c of the Money Laundering Act (Geldwäschegesetz – GwG ), Investment management companies (Kapitalverwaltungsgesellschaften), branches of EU management companies and foreign AIF management companies, foreign AIF management companies for which the Federal Republic of Germany is a reference Member State and which are supervised by the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin ) pursuant to section 57 (1) sentence 3 of the Capital Investment Code (Kapitalanlagegesetzbuch – KAGB ), insurance undertakings offering life insurance contracts or accident insurance contracts with premium refunds, as well as financial holding companies and mixed financial holding companies in the Federal Republic of Germany
Scanning fulfils record-keeping obligation pursuant to section 8 (1) sentence 3 of the GwG
In the light of the increased use of new technical processes, the question has been brought to my attention of whether the scanning of a document can be considered equivalent to making a copy thereof as regards meeting the record-keeping obligation (section 8 of the GwG ).
In accordance with section 8 (1) sentence 3 of the GwG , the record-keeping obligation pursuant to section 8 (1) sentences 1 and 2 of the GwG can be met by the creation of a copy of the document used for verification of identity. Clarification is needed as to whether scanning a document also meets the requirement pursuant to section 8 (1) sentence 3 first half-sentence of the GwG . According to BaFin's administrative practice, scanning a document presented for verification of identity pursuant to section 4 (4) sentence 1 no. 1 of the GwG or a document presented or used for verification of identity pursuant to section 4 (4) sentence 1 no. 2 of the GwG also meets the obligation to keep a record of the information contained in that document.
To store data saved in this way, those subject to this obligation must implement appropriate technical and organisational measures pursuant to section 8 of the GwG .
Yours faithfully,
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