Municipalities in North Rhine-Westphalia are set to verify money transfers from refugees.
Municipalities in North Rhine-Westphalia now have to review and approve refugee payment card transactions individually, including payments to property owners, sports clubs, and private purchases. Authorities warn of increased administrative burden while privacy advocates criticize this model.
Currently, 110 out of 396 municipalities in the state have expressed interest in implementing the payment card, and 36 of them have already been connected to the system. About 130 municipalities have rejected the card, and the majority remain undecided. Local elections may influence future adoption decisions.
The "Social Refugee Card" functions as a prepaid card for the living expenses of refugees. It allows payments in stores, but limits cash withdrawals to 50 euros per month and prohibits transfers for gambling, sexual services, or foreign accounts. Any payments for accounts not listed on the "white list" at the state level must be approved by local authorities.
Andreas Wohland from the Association of Cities and Municipalities explained that municipal employees must justify every expenditure, whether for paying rent to a local property owner, for a sports club, or for buying a bicycle for a child. Despite the increased administrative effort, municipalities see that the system prevents the misuse of funds.
The Refugee Council in North Rhine-Westphalia criticized the white list system as intrusive, stating that refugees are forced to justify their expenses and that the approach may lead to arbitrary decisions. Authorities assert that the model is in line with other German states and protects public funds, with around 23,000 cards already issued in state facilities.