Licence Requirement for Factoring and Finance Leasing in Germany Enacted

January 28, 2009
With the Enactment of the Annual Tax Act 2009, the activities of factoring and finance leasing have become regulated activities under the German Banking Act. Those who wish to provide factoring or finance leasing services in Germany will require a licence under the German Banking Act from the German Regulator Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). This update reviews the new requirements, which took effect on 25 December 2008.