Japanese Bankers Association

Supplement to "Matters to be Considered in Internet Banking" Drafted

JBA compiled the "Report on Matters to be Considered in Internet Banking" in April 2000. Since the report was released, there have been developments in Internet banking area including revisions to relevant laws and regulations, issuance of guidelines and launch of new services. A supplement to the original edition was drafted to account for changes, and sent to member banks on April 2.

The main points of the supplement are as follows.

-An amendment was made concerning the fact that the new regulation allows for banks to present financial product guidance via electro-magnetic means. The amendment indicates that banks must describe the type and content of the electro-magnetic means to the depositor and acquire the depositor's approval in writing or by electro-magnetic means concerning provision of the information through such means.
-An amendment was made to indicate that the explanation of important matters by providers of financial products had become mandatory.
-An addition was made to comply with the regulation that electronic consumer contracts become invalid if service providers fail to take steps to confirm the content of customer orders when the customer is deciding whether or not to execute the order.
-"Views on the Account Aggregation Service" that was issued by JBA in October 2001 was included as a reference to cover the new account aggregation service that has been launched in Japan following the U.S..
-An addition was made to observe the caution floated since last autumn on so-called cross-site scripting by the Ministry of Economy, Trade and Industry and other parties.