Japan Strengthens 2027 Bank Account Rules with IC Chip Verification

Published Date : 6/26/2025 

Japan is implementing stricter rules for remote bank account openings, requiring IC chip-based identity verification by April 2027. This move aims to combat identity theft and financial fraud by leveraging My Number ID cards and digital verification tools. The changes also include expanded access to My Number services on iOS devices. 

Japan is taking significant steps to enhance security in its financial sector by tightening rules for remote bank account openings. Starting in April 2027, financial institutions will be required to use IC chip-based identity verification for online and mail-in applications. This shift is part of a broader effort to curb identity fraud and prevent criminals from exploiting stolen or forged documents. The National Police Agency (NPA) highlighted that the updated regulations are tied to the Act on Prevention of Transfer of Criminal Proceeds, emphasizing the need for more robust identity checks. n n nThe new rules will mandate that applicants scan the embedded IC chip in their My Number ID cards or driver’s licenses to verify their identity. Currently, banks accept photos or photocopies of ID documents, but this method has proven vulnerable to counterfeiting. By requiring IC chip scans, authorities aim to create a more secure system that reduces the risk of fraudulent accounts being opened under false identities. This measure is particularly critical in addressing 'special fraud' cases, where scammers use stolen identities to commit bank transfer scams and telephone banking fraud. n n nFor individuals who do not have a My Number card or driver’s license, alternative documents will still be accepted. These include original, hard-to-forge papers like residency certifications, which can be submitted by mail. The NPA has set April 2027 as the compliance deadline, allowing financial institutions time to upgrade their digital verification systems. A draft of the revised rules, published in February, received 83 public comments, and the agency is also considering future requirements to scan IC-chip data during in-person identity checks. n n nIn parallel, Japan is expanding digital access to its My Number system. The government recently announced that major functions of the My Number ID card are now available on iPhones. This includes adding the digital ID to Apple Wallet and enabling biometric authentication for accessing public certificates at convenience stores. iPhone users can also log into the Mynaportal website for administrative tasks, such as verifying basic details like name and date of birth. While Android users have had similar features for some time, the iOS integration marks a key milestone in Japan’s digital transformation efforts. n n nThe My Number system, which includes a digital health insurance card, is set to gain even more functionality. As of May, over 98 million My Number cards had been issued, and the Digital Agency plans to roll out additional features, such as smartphone support for health insurance cards. These updates reflect Japan’s push to modernize its administrative processes and reduce reliance on physical documents. However, the transition to IC chip-based verification raises questions about accessibility for older populations and those without smartphones. n n nThe implementation of these rules has sparked debate about the balance between security and convenience. Critics argue that the shift could exclude individuals who lack the necessary technology or digital literacy. However, proponents emphasize that the measures are essential for protecting the financial system from increasingly sophisticated fraud schemes. As Japan moves forward, the success of these reforms will depend on how effectively financial institutions and the government collaborate to ensure compliance and address potential challenges. 

Frequently Asked Questions (FAQS): 

Q: When will the new IC chip verification rules take effect?

A: The new IC chip-based identity verification rules will be implemented in April 2027, giving financial institutions time to adapt their systems.

Q: What alternatives are available for those without IC chip-enabled IDs?

A: Individuals without My Number cards or driver’s licenses can submit original, non-forgable documents like residency certifications by mail.

Q: How does the My Number digital ID work on iPhones?

A: The My Number digital ID is now available on iPhones via Apple Wallet, allowing users to verify identity and access public certificates using biometric authentication.

Q: What is the purpose of the IC chip-based verification?

A: The IC chip-based system aims to prevent identity theft and fraud by making it harder to forge or steal personal information for financial crimes.

Q: What challenges might arise from these changes?

A: Potential challenges include accessibility issues for older adults or those without smartphones, as well as the need for financial institutions to upgrade their verification systems. 

More Related Topics :