HM Treasury and the Department for Science, Innovation and Technology (DSIT) have confirmed that certified Digital Verification Services (DVS) can be used to meet identity verification requirements under the Money Laundering Regulations 2017.
In joint guidance issued last week, the departments stated that DVS certified against the UK Digital Identity and Attributes Trust Framework (DIATF) and listed on the DVS Register can fulfil obligations under Regulation 28 of the Money Laundering Regulations 2017.
The move is designed to provide clarity for regulated sectors including financial services, legal, property and gambling.
The announcement means businesses subject to anti-money laundering (AML) rules – including estate agents and property professionals – can rely on DIATF-certified digital identity solutions when carrying out customer due diligence checks.
SIGNIFICANT SHIFT
SmartSearch, whose identity verification platform is DIATF-certified and listed on the DVS Register, said the decision represents a significant shift in regulatory certainty for firms adopting digital onboarding processes.
Seyfi Günay (main picture, inset), Chief Revenue officer at SmartSearch, says: “The 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.”
REGULATORY OBLIGATIONS
He adds: “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.”
STANDARDS CLARITY
And he says: “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.”
