New government guidance endorsing the use of digital identity verification in regulated sectors has raised fcompliance concerns across the property industry after failing to specify the level of verification firms must meet to satisfy anti-money laundering rules.
The Digital Verification Services (DVS) Trust Framework 1.0, published this week by HM Treasury and the Department for Science, Innovation and Technology, confirms that only government-certified digital verification providers can be relied upon for identity checks under the Money Laundering Regulations (MLRs).
Under the new regime, compliant providers must be certified under the UK Digital Identity and Attributes Trust Framework and listed on the government’s Digital Verification Services register.
Certified services will display a new “UK CertifID” trust mark designed to signal their compliance status to firms selecting identity verification tools.
LEVEL OF CONFIDENCE
However, the framework stops short of specifying the “Level of Confidence” (LoC) property professionals must apply when verifying customers, leaving estate agents and other regulated businesses to interpret the standard themselves.
Industry figures warn the lack of clarity could create inconsistency across the market at a time when regulators are placing increasing emphasis on anti-money laundering controls within property transactions.
CRITICAL GAP
Jon Parish, compliance manager at Credas, says the framework confirms certified digital verification services are the compliant route under the regulations but leaves a critical gap around the standards firms should apply.
He adds: “The Data (Use and Access) Act placed the Digital Identity and Attributes Trust Framework on a statutory footing in 2025, and this guidance reinforces that by confirming certified digital verification services are the compliant route under the MLRs,
“However, while the guidance addresses which providers are suitable, it doesn’t specify which Level of Confidence firms should use. Without clarity, firms are left to interpret the standard themselves – creating potential compliance inconsistency.”
SHARED ID DOCUMENTS
The framework defines four Levels of Confidence under Good Practice Guide 45 (GPG45) – Low, Medium, High and Very High – alongside detailed technical requirements including biometric testing and strengthened security controls for providers.
The issue comes against a backdrop of ongoing weaknesses in identity verification practices within property transactions.
Research from Credas suggests 62% of homebuyers have shared identity documents via email during a property purchase, a process that lacks structured verification, defined assurance levels or a clear compliance audit trail.
GREATER SPECIFICTY
Neil Williams (main picture, inset), Chief Technology Officer at Credas, says the introduction of the trust framework represents an important shift toward more secure digital identity checks, particularly as fraud becomes increasingly sophisticated.
“The Trust Framework and guidance represent a significant step forward in the adoption of secure and trusted methods of digital identification that protects not only property professionals but their clients as well.
“But as AI-generated fraud becomes more sophisticated, we need greater specificity. The framework now introduces strict biometric testing standards to combat these threats, but without clarity on required Levels of Confidence, firms lack clear direction on what ‘compliant’ actually means in practice.”
Credas says firms selecting digital verification providers should look for the new “UK CertifID” trust mark to ensure the service is certified under the government framework.
