The Financial Crimes Enforcement Network, jointly with staff from the federal banking and credit union regulators, issued two new frequently asked questions and updated an existing one to clarify how banks and credit unions may use government-issued verifiable digital credentials to verify natural person customers under the Customer Identification Program Rule. Institutions may accept state-issued mobile driver’s licenses and similar credentials for in-person or remote account opening when permitted by their customer identification programs and when the rule’s requirements are met. The guidance does not change Bank Secrecy Act requirements or establish new supervisory expectations. An unexpired government-issued digital credential may qualify as documentary identification if it evidences nationality or residence, includes a photograph or similar safeguard, and the institution has the technology to extract the required information. Institutions generally may rely on such credentials but must consider indications of fraud when determining whether they reasonably believe they know a customer’s true identity. Electronic credentials issued and maintained by nongovernment third parties may also be used as a nondocumentary verification method, but the institution must ensure the third party applies the same level of authentication that the institution itself would use.

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