The UK government has delivered what industry participants are calling a decisive moment for digital identity, after confirming that certified Digital Verification Services (DVS) can be used to meet statutory identity checks under anti-money laundering rules.
In joint guidance published by HM Treasury and the Department for Science, Innovation and Technology (DSIT), officials clarified that DVS certified under the UK Digital Identity and Attributes Trust Framework (DIATF) and listed on the DVS Register can satisfy identity verification obligations set out in Regulation 28 of the Money Laundering Regulations 2017.
The confirmation provides long-awaited regulatory certainty for organisations required to conduct customer due diligence, spanning financial services, legal, property, gambling and other regulated sectors.
Anti-money laundering specialist SmartSearch described the move as a turning point for digital identity adoption. The company said the guidance resolves persistent questions around whether digital identity checks could be relied upon as a compliant and independent source of verification, particularly for firms without extensive in-house compliance teams.
SmartSearch’s own identity verification platform is DIATF-certified and listed on the DVS Register. The company said the announcement validates its early commitment to certification and reinforces confidence among its client base.
Commenting on the development, SmartSearch chief revenue officer Seyfi Günay 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.”
He added: “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.”
Günay also highlighted the broader implications for digital onboarding. “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.”
He continued: “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.”
The government has previously estimated that widespread digital identity adoption could deliver £701m in annual economic benefits. According to SmartSearch, the new guidance provides the regulatory certainty required to unlock that potential, accelerating digital transformation across regulated markets and strengthening compliance confidence at a time of heightened AML scrutiny.
Keep up with all the latest FinTech news here
Copyright © 2026 FinTech Global
