Reliance model

The reliance model (Section 17 AMLA) is the possibility to outsource due diligence obligations under money laundering law to third parties. In this context, the law distinguishes between a third party that is reliable by law (banks, payment institutions and financial institutions) and other third parties.

The third parties who are reliable by law are themselves supervised by BaFin and are themselves subject to the obligations under money laundering law, so that an outsourcing agreement is not necessary in this case. In the case of other third parties, however, an outsourcing agreement is mandatory.

The Reliance model also has implications for the KYC process.

This is particularly evident in the area of distance selling, where it is not always possible to identify the customer on the spot, which is why it is advisable to carry out customer identification by means of the video identification procedure. In doing so, the obligated party often uses a third party provider who offers this procedure as a service, depending on whether they are regulated, they are to be classified as reliable or other third parties. Despite outsourcing, the obligor remains ultimately responsible for the fulfilment of the KYC obligations.