pc
nid 93030
Jun 01, 2026
ggallwey@vixio.com
Chile
Financial Markets Commission
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1866 charsChile's Financial Markets Commission Adjusts Strong Customer Authentication Requirements for Vulnerable Client Groups
On June 1, 2026, the Financial Markets Commission (CMF) announced modifications to strong customer authentication (SCA) requirements, permitting specified groups of clients to continue using coordinate card authentication beyond August 1, 2026.
The CMF modified its General Normative Circular N°538 (NCG N°538) to allow financial institutions to exempt certain vulnerable customer segments from transitioning to the new Customer Strong Authentication (ARC) mechanism. The exemption applies to clients meeting predefined criteria: elderly customers aged 65 and above; individuals with deteriorated health conditions or disabilities; those with difficulty accessing physical service channels; or those lacking compatible or available trusted devices—such as smartphones—required for alternative authentication mechanisms.
Financial institutions electing to establish customer groups permitted to retain coordinate card authentication must notify the CMF by August 1, 2026. The CMF emphasises that operations using coordinate cards will not qualify as ARC-compliant authentication. Consequently, financial institutions assume greater risk for unauthorised transactions conducted through coordinate card authentication. The modification also clarifies that electronic fund transfers between accounts held by the same customer at the same institution remain exempt from ARC requirements. Additionally, for recurring payments, strong authentication is required only when the customer initially enters the instruction.
The CMF published a regulatory report detailing the norm's primary provisions and impact assessment. This adjustment aims to facilitate a smoother transition for financially vulnerable populations while maintaining security standards for the broader customer base. Financial institutions must implement these provisions by the August 1, 2026 deadline.
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2007 charsChile's Financial Markets Commission Adjusts Strong Customer Authentication Requirements for Vulnerable Client Groups
On June 1, 2026, Chile's Financial Market Commission (CMF) amended General Rule No. 538 to permit certain categories of customers to continue using coordinate cards and other authentication mechanisms based on printed data sets, despite the introduction of Strong Customer Authentication (SCA) requirements.
The amendment is intended to facilitate the transition to stronger authentication requirements and prevent certain customers from losing access to digital financial services when the new framework takes effect. Under the revised rule, institutions may continue to allow the use of coordinate cards by existing customers who meet specified criteria, including older adults, individuals with health conditions or disabilities, customers who face difficulties accessing physical service channels, and customers who do not have access to compatible trusted devices such as smartphones.
The change provides financial institutions with greater flexibility in implementing Strong Customer Authentication requirements for vulnerable customer groups, while placing greater responsibility on firms to manage the associated fraud and authentication risks. Institutions that elect to maintain coordinate cards for eligible customer groups must notify the CMF no later than August 1, 2026. The regulator also clarified that transactions authenticated using coordinate cards will not qualify as Strong Customer Authentication, meaning institutions will assume greater liability and risk in cases involving disputed or unauthorized transactions.
In addition, the amendment clarifies that transfers between accounts held by the same customer at the same institution are exempt from Strong Customer Authentication requirements. It also confirms that recurring payment arrangements require Strong Customer Authentication only when the customer initially provides the payment instruction.
The changes take effect ahead of the August 1, 2026 implementation deadline for the Strong Customer Authentication framework.