HM Treasury and the Department for Science, Innovation and Technology have issued joint guidance confirming that Digital Verification Services certified under the UK Digital Identity and Attributes Trust Framework can be used to meet identity verification requirements set out in Regulation 28 of the Money Laundering Regulations 2017.
The clarification means that services certified against the Digital Identity and Attributes Trust Framework and listed on the Digital Verification Services Register can be treated as a reliable and independent source of information, provided they offer appropriate anti-impersonation safeguards.
For property professionals, who fall within the scope of the Money Laundering Regulations, the move is likely to be seen as a significant development.
Estate agents and other property businesses are required to carry out customer due diligence checks, and uncertainty over whether digital-only identity solutions fully satisfied regulatory requirements has, in some cases, slowed adoption.
Anti-money laundering specialist SmartSearch described the announcement as a “watershed moment” for digital identity verification in the UK.
Seyfi Günay, chief revenue officer at SmartSearch, said: “Today’s publication of joint guidance from HM Treasury and DSIT marks a watershed moment for digital identity verification in the UK.
“For the first time, the Government has formally confirmed that certified Digital Verification Services can be used to fulfil identity verification obligations under Regulation 28 of the Money Laundering Regulations 2017.
“The guidance is clear: DVS certified against the UK Digital Identity and Attributes Trust Framework (DIATF) and listed on the DVS Register can be treated as a reliable and independent source of information with appropriate anti-impersonation assurance.
“SmartSearch’s identity verification solutions are DIATF-certified, meaning regulated entities across financial services, legal, property, gambling, and other sectors can use our platform with complete confidence that they’re meeting their regulatory obligations.
“For us, this validates our investment in DIATF certification and confirms that our customer-first approach to development and technology delivers real value.
“Businesses using our platform are on the right side of regulatory expectations because we prioritised certification from the outset, not as a compliance checkbox, but as a commitment to giving our customers the certainty they need.
“This removes a critical barrier that has held back adoption. While many regulated businesses already use digital onboarding journeys, uncertainty about whether digital identity checks fully satisfied MLR requirements created hesitation, particularly among smaller firms without in-house compliance expertise.
“What’s particularly significant is the breadth of sectors this affects. The Money Laundering Regulations apply to everyone from banks and investment firms to estate agents, art dealers, and high-value goods traders. All of them now have clarity that certified digital identity solutions meet the standard.
“With the government estimating £701 million in annual economic benefits from widespread digital identity adoption, this guidance provides the regulatory certainty needed to unlock that potential, certainty that SmartSearch customers have had all along.”
The guidance is likely to be welcomed by compliance teams across the property sector, particularly as enforcement activity and supervisory expectations around anti-money laundering controls have intensified in recent years.
By formally recognising certified digital verification services as capable of meeting Regulation 28 requirements, the government has provided clearer parameters for firms assessing their customer due diligence processes.
For estate agencies and conveyancing practices balancing regulatory risk with operational efficiency, the decision could accelerate the shift towards fully digital onboarding.
