Japan to require IC chip ID verification for online bank accounts in 2027

Japan will require banks and credit card companies to use IC chip-based identity verification for non-face-to-face account openings starting in April 2027, under a revised rule aimed at curbing fraud, the National Police Agency (NPA) said Thursday.

The change to the enforcement of the Act on Prevention of Transfer of Criminal Proceeds will make it mandatory for financial institutions to confirm customers' identities via IC chips embedded in My Number identity cards or driver's licenses.

Submitting images or photocopies of ID documents — currently allowed in online or mail-based applications — will be prohibited due to the growing difficulty of detecting forgeries, the agency said.

The new rule is designed to prevent fraudulent accounts — often used in schemes known as special fraud, which includes bank transfer scams and telephone banking fraud — from being opened under stolen identities.

Under the existing framework, financial institutions are obligated to verify a customer's identity when opening an account. In online settings, this has typically involved sending images of ID documents via smartphone or mailing photocopies — methods increasingly vulnerable to advanced counterfeiting techniques.

The revised regulations designate IC chip scanning as the default method of digital verification. For those without a My Number card or driver's license, alternative documentation such as original copies of residency certificates or tax documents — which are harder to falsify — can still be submitted by mail.

Authorities have set the implementation date two years out to allow sufficient time for system upgrades on the part of financial service providers.

The NPA published the draft revision in February and received 83 public comments. It is also considering requiring the use of IC chip data for in-person identity checks in the future.