# FinCEN Digital ID Rules for Banks

> Banks can now use government digital IDs for customer checks but must handle fraud risks.
- Title: FinCEN Digital ID Rules for Banks · Pymnts | Shortify
- Summary: Banks can now use government digital IDs for customer checks but must handle fraud risks. Banks can use government-issued digital credentials for identity…
- Keywords: finsec, digital identity, bank customer verification, fincen, customer identification program, banking regulations, business, finance, Digital, Rules, Banks, Pymnts
- Source: Pymnts — https://pymnts.com/legal/2026/fincen-clears-path-for-digital-ids-in-bank-customer-verification-with-caveats
- Author: PYMNTS
- Published: 2026-10-13T15:30:59+00:00
- Read time: 1 min
- Topics: finsec, digital identity, bank customer verification, fincen, customer identification program, banking regulations, business, finance
## FinCEN clarifies digital ID use
Federal financial regulators allow banks to use government-issued digital credentials for customer identity verification.
## Digital credentials require tech checks
Banks must ensure systems can verify digital credentials meet legal identity requirements.
## Digital vs. traditional IDs
Digital credentials are cryptographically signed and protected by activation factors unlike photos of IDs.
## Fraud risks remain
Banks must check for discrepancies in sanctions, records, addresses and device risks.
## Compliance unchanged
Existing customer due diligence and fraud monitoring rules stay in place for digital ID use.
## Next steps for banks
Banks need procedures to handle fraud, request extra docs, or suspend onboarding if needed.
## Key takeaway

Banks can use government-issued digital credentials for identity verification but must ensure systems can detect fraud and handle exceptions.