German eID Card Criticized as Aid to Money Laundering

Since 2021, Germany has had eID cards that serve to prove one's identity and address online. They cost 37 euros, are valid for ten years, and can be obtained by non-German EEA citizens aged 16 and over at residents' registration offices. A report by Süddeutsche Zeitung (SZ) now criticizes the handling of their issuance: according to the report, many offices insufficiently verify the identity of applicants, meaning money launderers and other criminals could obtain eID cards using forged or stolen foreign identification documents.

Applicants must appear in person at a residents' registration office to apply for a German eID card and present identification. However, many registration offices do not have verification devices to check the authenticity of the presented ID because these devices are expensive. Biometric matching or checking if the presented ID is reported as stolen are also not part of the necessary verification regime, as it is not a travel document.

The SZ report quotes the Berlin police as an example: "A comparison of biometric data or a comparison with the European document wanted list does not take place. Not all registration authorities are equipped with document verification devices." The Federal Ministry of the Interior has pointed out to the newspaper that these regulations are the responsibility of the federal states, which would certainly carry them out conscientiously.

Impermissible Use Cases

Once issued, the card can be used, for example, for online opening of bank accounts. Simple criminals would obtain eID cards under false identities using forged or stolen documents to open bank accounts with overdraft facilities. The limit is then exhausted, the virtual customer disappears, and the bank is left with the damage.

More sophisticated criminals would set up bank accounts and corporate networks under foreign identities for money laundering or more complex fraud schemes. Since eID cards are designed for online use, they can be easily passed on. Photos or biometric data are not included, especially since their comparison is difficult online.

Content of the eID Card

The following data is printed on the eID card and also stored on the included chip: card numbers, family name, maiden name, given names, any doctorates, day, and place of birth, address, or, if applicable, the designation "no residence in Germany". Nationality, if applicable, order name or stage name, the type of identification document presented, and the expiry date of the eID card.

Issuance to individuals without a German residence is intentional, as these individuals in particular are intended to be able to manage German administrative procedures with the help of the eID card. The chip can be read using a card reader or an NFC-enabled smartphone, requiring the entry of a six-digit number (PIN).

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