The Federal Financial Supervisory Authority (BaFin) publishes warnings about companies offering financial services in Germany without the authorisation required under § 32 KWG, and about providers imitating regulated firms. Alongside the warnings, BaFin maintains a company database in which licensed institutions can be looked up.
An entry means the authority has identified a concrete problem. The absence of an entry means considerably less: warnings are published only once a provider has come to the attention of the supervisor, so a new or unnoticed scheme will not appear.
Why it matters to you
Checking the database and the warnings before depositing is one of the few free, fast protective steps available. Afterwards, a missing licence is also legally relevant: because the licensing requirement protects investors, its breach can found claims for damages. See our broker fraud page and the guide to spotting dubious trading platforms.
Asset freezing
Asset freezing (§§ 111b et seq. StPO): provisional securing of assets in criminal proceedings — the basis for confiscation and compensation.
Capital investment fraud
Capital investment fraud (§ 264a StGB): false statements presenting an investment favourably when marketing it to a larger group of investors.
Chargeback
Reversal of a card payment through the issuing bank — when it comes into consideration after fraud and which limits apply.