Simplified Due Diligence Obligations; Authorisation to Issue Statutory Instruments

(1) Obliged entities need fulfil only simplified due diligence obligations insofar as they determine, taking account of the risk factors set out in Annexes 1 and 2, that in particular areas, especially as regards customers, transactions, and services or products, only a low money laundering or terrorist financing risk exists. Before applying simplified due diligence obligations, obliged entities shall satisfy themselves that the business relationship or transaction is in fact associated with a lower money laundering or terrorist financing risk. Section 10(2), fourth sentence applies correspondingly to demonstrating appropriateness.
(2) Where simplified due diligence obligations are applicable, obliged entities may 1. appropriately reduce the scope of the measures required to fulfil the general due diligence obligations, and 2. in particular carry out verification of the information collected for the purpose of identification under section 11, by way of derogation from sections 12 and 13, on the basis of other documents, data or information that originate from a credible and independent source and that are suitable for verification purposes. Obliged entities must, in every case, ensure that transactions are reviewed and business relationships monitored to an extent that enables them to identify and report unusual or suspicious transactions.
(3) Where the obliged entity is not able to fulfil the simplified due diligence obligations, section 10(9) applies correspondingly.
(4) The Federal Ministry of Finance may, in agreement with the Federal Ministry of the Interior, Building and Community, by statutory instrument not requiring the consent of the Bundesrat, determine fact patterns in which, in particular as regards customers, products, services, transactions or distribution channels, a lower money laundering or terrorist financing risk may exist, and in respect of which obliged entities need, under the conditions of subsection (1), fulfil only simplified customer due diligence obligations. The risk factors set out in Annexes 1 and 2 shall be taken into account in making that determination.
(5) Regulation (EU) 2023/1113 does not apply to domestic transfers of funds to a payment account of a payee on which only payments for the supply of goods or services may be made, where 1. the payment service provider of the payee is subject to the obligations of this Act, 2. the payment service provider of the payee is able, by means of an individual transaction number, to trace, through the payee, the transfer of funds back to the person who entered into an agreement with the payee for the supply of goods and services, and 3. the amount transferred does not exceed EUR 1,000.