In this article

• What do I need for identity verification?
  • What are identification documents?
  • What is the ID number and where can I find it?
• What does KYC mean?
  • What is a KYC process?
  • What is the purpose of the KYC process?
  • What happens if I do not take part in the repeated identity verification?
  • How does identity verification (KYC verification) work at Unzer?
  • Who or what is IDnow?
  • How does identity verification with IDnow work?
  • How long does the VideoIdent procedure take?
  • I haven't received an email from IDnow — who can help me?
• What is BaFin?
  • What requirements does BaFin review in the prevention of money laundering?
  • When does the obligation to verify identity apply?

As a German payment service provider, Unzer is licensed and supervised by the Federal Financial Supervisory Authority (BaFin).

In accordance with BaFin's regulatory requirements (Money Laundering Act), we are obligated to regularly verify the identity of our customers.

What do I need for identity verification?

Valid identification documents are absolutely required for identity verification.

What are identification documents?

An ID document (short for identification document or ID) is any document that can be used to verify a person's identity.

Identification documents include passports, ID cards, IC cards, and citizen cards.

In Germany, identification documents are usually the national ID card (Personalausweis), the passport, or, with some limitations, the driver's license. Other national IDs issued outside of Germany are also included.

Identification documents contain essential personal data — that is, all information and data that relate to a person and allow conclusions to be drawn about that person.

General personal data such as name, date of birth, place of birth, and address are typically included. ID documents also record physical characteristics such as gender, eye color, and height.

Biometric data such as a passport photo or fingerprints help with unique identification; on the electronic German ID card, this data is also stored digitally.

In Germany, all residents aged sixteen and older are required to possess either a national ID card or a passport.

What is the ID number and where can I find it?

The ID number is the unique identification number assigned to a single identification document — that is, the ID card number or passport number.

On the German national ID card, the ID number can be found on the front side in the upper right corner. It is also printed on the back. In the three-line machine-readable zone on the lower half of the back side, the ID card number appears in the first line following the abbreviation “IDD<<”.

On the German passport, the ID number can also be found in the upper right corner under the label “Pass-Nr./Passport No/Passport №”. Additionally, it appears in the two-line machine-readable zone at the bottom. There, it is located at the very beginning of the second line and is separated at the end by “<<”.

What does KYC mean?

KYC stands for "Know Your Customer" and refers to the process of identifying and verifying the identity of new and existing customers, who may be either natural persons or legal entities.

When identifying and verifying legal entities, the term KYB — "Know Your Business" — is used.

What is a KYC process?

The KYC process involves identifying and verifying a customer's identity by carrying out a series of checks to prevent establishing business relationships with individuals who may be connected to terrorism, corruption, or money laundering, among other risks.

What is the purpose of the KYC process?

The primary purpose of the KYC process is to prevent money laundering and fraud.

The KYC process not only protects the financial institution conducting the checks, but more importantly, it helps safeguard the public good and the economy.

The goal of anti-money laundering efforts is to prevent the transfer of money and assets derived from illegal activities into the legal financial and economic system. In particular, it aims to stop the further use of such funds for criminal activities or even terrorism.

Fraud prevention focuses on protecting society and market participants from crimes such as identity theft using forged or stolen identification documents.

What happens if I do not take part in the repeated identity verification?

If you do not complete the required identity verification within the specified timeframe, we are obligated to initiate a transaction freeze.

How does identity verification (KYC verification) work at Unzer?

The customer, whether a natural or legal person, opens an account or already has an existing business relationship with Unzer.

Unzer contacts the customer via email and requests them to complete the identity verification process.
The identification is carried out by the company IDnow on behalf of Unzer.

The customer must present official documents (such as an ID card or passport) of the individual or, in the case of legal entities, the person representing the company.

IDnow reviews the information, validates it, and then forwards it to Unzer. The verification is then considered complete.

Who or what is IDnow?

For legally compliant and convenient video authentication, Unzer partners with IDnow, a TÜViT-certified provider.

How does identity verification with IDnow work?

Via video chat (VideoIdent procedure), an IDnow employee compares your ID and the personal information you provided directly with you. Both the front and back of your ID card are automatically scanned. When prompted, hold your ID up to the camera.

How long does the VideoIdent procedure take?

On average, identity verification via VideoIdent takes between three and five minutes. The data is transmitted over a secure connection and used solely for identification and documentation purposes.

I haven't received an email from IDnow — who can help me?

Please also check the spam folder in your email inbox.

If you have not received an email from our partner IDnow, please contact the Unzer KYC team using the contact form below or via the following email address: rekyc@unzer.com.

What is BaFin?

The Federal Financial Supervisory Authority, better known as BaFin, is Germany’s financial regulatory authority.

It is an independent federal institution under the supervision of the Federal Ministry of Finance. BaFin ensures that people in Germany can have confidence in the financial system.

What requirements does BaFin review in the prevention of money laundering?

The prevention of money laundering also falls within BaFin’s responsibilities.

In line with BaFin’s core mission, money laundering can pose a threat to the stability of the financial system, especially if credit institutions are misused for such activities.

For this reason, BaFin sets out requirements aimed at ensuring transparency in the financial market and making business relationships and transactions traceable and low-risk. These requirements include specific due diligence obligations defined in the German Money Laundering Act (GwG), and BaFin monitors compliance with them. 

These due diligence obligations include, among others, identifying contractual partners, gathering background information on the purpose of the business relationship, and checking whether the contractual partner belongs to the group of politically exposed persons (PEPs).

The identification of contractual partners must always be carried out before entering into a business relationship or completing a transaction.

When does the obligation to verify identity apply?

The requirements of the German Money Laundering Act (GwG) must generally be fulfilled by all so-called “obligated parties.” These include, for example, banks, lawyers, financial service providers, gambling operators, and real estate agents.

For these groups, it is mandatory to identify every contractual partner before entering into a business relationship or carrying out a transaction. This means that banks, for instance, must verify every customer before opening an account, and gambling operators must identify their users during registration.

The following information must be recorded: first and last name, address, date and place of birth, nationality, ID number, type of ID, and the issuing authority.

For existing customers, if this information has already been collected, a repeated identification may be waived.

BaFin monitors this identification process in accordance with the GwG and periodically issues interpretation and application guidelines (AuA) for the Money Laundering Act. These are intended to help financial sector companies and other obligated parties comply with their due diligence obligations.

The GwG stipulates that BaFin’s AuA apply to all obligated parties under its supervision — in particular, credit institutions, financial service providers, and insurance companies.

If suspicious activity is detected with a contractual partner, there is a mandatory reporting obligation. However, BaFin is not responsible for handling individual reports. Indications of money laundering must be reported to the Financial Intelligence Unit (FIU).