Germany to make banks offer accounts to refugees and the homeless

The EU payment account directive contains these rights for EU citizens but it does not relax the anti money laundry snd anti terrorist financing controls for banks. These requirements are on UN level and cannot unilaterally be changed by single country. Banks obiding German rules can be prosecuted in other countries. How do you perform an AML/ATF check on a foreigner without passport and other ID documents?

Kudos to the German Government for such plan which will ease the parctical difficulties currently being faced by asylum seekers.

I agree that AML is a challenge with this. The answer is that this is a basic account, and should have significant limitations on cash movement, credit limits, etc. Many countries outside Europe are implementing risk-based simplied AML requirements - this would be a further extension that the German (and other European) government could implement alongside this critical financial inclusion initiative.