Chile and Mexico Implement New Security Protocols for Bank Transfers

Financial institutions in both Chile and Mexico have rolled out sweeping regulatory updates designed to eliminate traditional security vulnerabilities. The changes, which took effect on July 1, 2026, mark a significant departure from legacy transaction methods by requiring advanced identification measures for everyday banking and high-value movements.

The End of Plastic Coordinate Cards Under Chile’s ARC Regulations

Digital banking in Chile underwent its most substantial transformation in years on July 1, 2026, with the strict enforcement of the Autenticación Reforzada de Clientes (ARC) mandate issued by the Comisión para el Mercado Financiero (CMF). The policy effectively eliminates traditional plastic coordinate cards for the vast majority of account holders.

Under the prior framework, plastic grids of numbers served as authorization for critical banking operations. Financial institutions are now legally barred from authorizing high-risk transactions—such as transfers to new recipients or large montos altos—using coordinates alone. Instead, the regulatory framework forces banks to deploy multifactor authentication standards.

Multifactor Authentication and Biometric Enrollment Requirements

The updated banking architecture requires financial platforms to cross-reference at least two independent security factors drawn from three mandatory categories. Users must verify their identity using something they know, such as a digital password or PIN; something they possess, such as a trusted smartphone running a soft token or banking application; and something they are, through enrolamiento biométrico via facial recognition, fingerprint scanning, or voice verification.

Routine operations—including transfers between accounts held by the same customer or pre-registered recurring automated payments—do not trigger mandatory biometric demands. However, users attempting to move funds without updating their security settings risk unexpected blocks or transaction limits.

Exceptions for Vulnerable Populations in Chile

Recognizing that mandatory digital authentication could create exclusion, the CMF established narrow exemptions allowing banks to maintain active coordinate cards for specific vulnerable groups. These exceptions apply to older adults, individuals with deteriorated health conditions or disabilities, customers facing severe difficulties reaching physical branches, and users lacking compatible smartphones.

Cash Deposit Controls and Biometric Scrutiny in Mexico

Concurrently, banking institutions in Mexico initiated strict identification protocols for cash transactions on July 1, 2026. According to reporting by infobae.com, withdrawals or cash deposits iguales o superiores a 140,000 pesos now require both a valid official identification and direct biometric validation.

The requirement applies to any individual executing the transaction at a physical branch, whether they are the account holder or an authorized third party. Accepted documents include the voter credential (INE), passport, or professional license. Transactions are rejected automatically if documents are expired or if data mismatches occur.

The rules target commercial operators, business owners, and individuals managing large cash volumes. Furthermore, international transfers completed by individuals will face restrictions starting June 30, 2027, limiting transactions strictly to bank accounts and requiring identification and biometrics for any associated cash movements.