Regulatory Alerts2026-06-01
CMF issues regulation adjusting strong authentication requirements, allowing client groups to continue using coordinate cards
The Chilean Financial Market Commission (CMF) amended Regulation NCG No. 538 to exempt specific client groups from the mandatory transition to Strong Customer Authentication (SCA) by August 1, 2026, allowing them to continue using coordinate cards. Eligible groups include senior citizens, individuals with health conditions or disabilities, those lacking access to physical branches, and users whose trusted devices are incompatible with the institution's required authentication tools. Institutions must notify the CMF of these exempted groups by August 1, 2026, while noting that coordinate card transactions will not qualify as SCA and issuers will bear higher fraud risk, alongside clarifications that internal transfers and recurring payment setups remain exempt from SCA requirements.
CMF issues regulation adjusting strong authentication requirements, allowing client groups to continue using coordinate cards
The proposal seeks to prevent clients who face greater difficulties in adopting authentication mechanisms alternative to coordinate cards from being prevented from conducting their digital financial operations starting August 1, 2026.
June 1, 2026.- The Financial Market Commission (CMF) announces that its Board decided to modify the obligation to eliminate authentication mechanisms using printed data sets, such as coordinate cards, to apply only to client groups that face difficulties in adopting more robust mechanisms.
This decision aims to facilitate the transition of financial clients toward the new Strong Customer Authentication (SCA) mechanism. Accordingly, the CMF amended NCG No. 538, allowing specific groups of clients, who are active at the time this regulation takes effect and who meet predefined criteria, to continue using coordinate cards as an authentication mechanism.
The criteria considered for inclusion in the aforementioned groups are as follows: being a senior citizen; presenting a deteriorated health condition or disability; having difficulty accessing physical service channels; or, experiencing incompatibility or unavailability of trusted devices—for example, a smartphone—with the authentication mechanisms required by the institution.
Institutions that opt to establish client groups that maintain the use of coordinate cards based on the aforementioned criteria must notify the CMF no later than August 1 of the current year. It should be noted that in operations where coordinate cards are used, authentication will not be considered SCA, which implies that issuers will assume greater risk in cases of unknown transactions.
Additionally, the regulatory amendment explicitly states that electronic fund transfers between accounts of the same client at the same institution are exempt from SCA. Furthermore, it is clarified that for recurring payments, strong authentication will only be required at the moment the client submits the instruction.
The full text of the regulation is available in the "Global Consultation - Regulation" section of the institutional website. The CMF also publishes a Regulatory Report presenting the main contents of the regulation along with its impact assessment.
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