Starting April 2027, Real Estate Transaction ID Verification Methods Will Change: PICKFORM Updates eKYC Function to Comply with Revised AML Law

PICK Co., Ltd. (Headquarters: Minato-ku, Tokyo; President and CEO: Tatsuya Fuke) announces the update of the electronic identity verification function on its real estate and construction DX platform 'PICKFORM' to align with the revised Enforcement Regulations of the Act on Prevention of Transfer of Criminal Proceeds (AML Law), effective April 2027. The updated service will be available starting June 1, 2026. This update enables compliance with the revised ID verification method (IC chip reading) for both in-person and remote transactions.

This revision will bring significant changes to ID verification procedures in real estate transactions. With approximately 10 months remaining until enforcement, real estate businesses must begin implementation by 2026 to allow sufficient time for system upgrades, operational adjustments, and internal training. PICKFORM's timely update supports the industry's early compliance.

## Background: Changes to ID Verification in Real Estate Transactions from April 2027

### Overview of the Revision

The revised AML Enforcement Regulations consist of two ordinances: one amending ID verification for remote transactions (promulgated June 24, 2025) and another amending verification for in-person transactions (promulgated March 6, 2026). Both will take effect on April 1, 2027. As a result, reading IC chips from identity documents (e.g., My Number Card, driver’s license) will become the standard method for both in-person and remote transactions.

### Situations Requiring ID Verification (for Real Estate Brokers)

Real estate brokers are required to verify identities under the AML Law in the following cases related to land and building transactions:

- When acting as a seller
- When acting as a buyer
- When involved as an agent in a sales contract
- When involved as a broker in a sales contract

※ For corporate transactions, in addition to verifying the corporation, the identity of the transaction officer (e.g., representative) must also be verified. The verification method for representatives follows the same procedure as for individual clients.

## What Changes (for In-Person Transactions)

### Current Method

- Presentation of original photo ID document + visual inspection by staff
- Or, presentation of original residence certificate + non-forwardable mail

### From April 2027

- Presentation of original photo ID with IC chip + reading of IC chip data
- Or, presentation of original residence certificate + non-forwardable mail

For remote transactions, IC chip reading will also become the standard. The previously common 'image submission method'—combining document and facial images—will no longer be accepted as a standalone verification method.

Regardless of transaction type, a verification system compliant with IC chip reading will be required.

## Need for Industry Preparedness

Real estate transactions frequently involve high-value, high-risk deals. Adapting to the new verification methods requires both system modifications and internal operational adjustments.

Despite the 10-month window, awareness of the revision and implementation timelines remains insufficient across the industry. Based on discussions with client companies, PICKFORM frequently hears that 'detailed planning for compliance has yet to begin.'

## 'Implementation by 2026' as a Realistic Timeline

Compliance requires more than just system integration. It includes redesigning internal workflows, staff training, establishing operational rules, and allowing time for practical familiarization. Starting preparations just before enforcement risks operational delays.

A realistic timeline is 'initiate implementation in 2026, achieve operational readiness by March 2027.'

## Three Key Features of 'PICKFORM eKYC'

This update not only complies with the revised regulations but is also designed for seamless integration with PICKFORM's electronic contract workflow.

### 1. Compliance with Revised ID Verification Methods

Supports ID verification with IC chip reading. Enables completion of verification for both in-person and remote transactions in line with the revised standards. Customized operational designs can be discussed based on each client's transaction characteristics and customer profiles.

### 2. Integrated Operation with Electronic Contract Workflow

When using separate services for ID verification and e-contracts, integration and rule alignment become complex. PICKFORM allows the entire process—from ID verification to explanation of important matters, contract document management, signature requests, execution, and storage—to be completed on a single platform. This reduces development burdens and enables integrated operation of post-revision verification and e-contract processes.

### 3. Visualized Verification Progress on a Single Screen

Verification status and completion records are centrally managed per contract case. A single dashboard shows 'who has cleared verification at which stage,' reducing operational burden and oversight risks for both field staff handling multiple transactions and headquarters compliance teams.

## Target Use Cases

The service supports both in-person transactions at offices and remote online transactions.

- ID verification for buyers and sellers in real estate transactions
- ID verification for agents and brokers in sales contracts
- Handling high-value transactions in condominium developments

## Future Developments

Looking ahead to the April 2027 enforcement, PICKFORM will continue enhancing features to support early industry compliance. Updates will be rolled out sequentially, incorporating client feedback on field-specific scenarios and post-revision operational needs.

Additionally, PICKFORM plans to release multiple new features from June 2026 onward to improve efficiency in the real estate and construction industries. Updates will be announced via press releases and the service website.

PICKFORM will continue advancing operational efficiency and contract DX as a vertical, all-in-one SaaS platform specialized for real estate and construction.

## Service Overview: 'PICKFORM'

PICKFORM is the only electronic contract and business efficiency system to receive official compliance confirmation from Japan's Ministry of Land, Infrastructure, Transport and Tourism.