US banks and credit unions can now use qualifying mobile driver’s licences (mDLs) to verify new customers under clarified federal guidance, but integrating the credentials into existing onboarding systems remains a challenge.
In an analysis published by digital identity provider Hopae, the company argues that the regulatory clarification removes a key source of uncertainty for financial institutions, shifting attention towards the technology needed to support digital identity verification.
On 8 September 2026, the Financial Crimes Enforcement Network (FinCEN), alongside staff from the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA) and Office of the Comptroller of the Currency (OCC), issued guidance on using state-issued mDLs and other government-issued verifiable digital credentials under the Customer Identification Program (CIP) Rule. <Cite refs={[“turn793511search2″,”turn793511search3”]}/>
Hopae notes that the announcement does not introduce a new law or require banks to accept digital identification. Instead, the guidance clarifies how existing customer identification requirements apply to qualifying digital credentials. FinCEN confirmed that the FAQs do not change Bank Secrecy Act obligations or establish new supervisory expectations.
Under the clarified interpretation, a state-issued mDL can qualify as government-issued identification for CIP purposes. Banks must continue to verify customer information, including name, address and date of birth, in line with their existing identification programmes.
The guidance also covers other government-issued verifiable digital credentials, subject to applicable requirements. These credentials must contain a photograph or equivalent safeguard and evidence of nationality or residence. Where a third party issues a credential, the financial institution remains responsible for verifying it to the required standard.
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