HM Treasury and the DSIT have issued joint guidance confirming that certified DVS can be used to meet identity verification requirements under Regulation 28 of the Money Laundering Regulations 2017.
The move has been described as a “watershed moment” for digital identity in the UK, offering long-awaited regulatory certainty for firms operating in heavily regulated sectors.
The clarification confirms that 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, provided appropriate anti-impersonation safeguards are in place. For firms navigating anti-money laundering (AML) obligations, the guidance removes ambiguity around whether digital identity checks satisfy statutory requirements.
RegTech firm SmartSearch, which provides identity verification and AML solutions, welcomed the announcement. The company’s identity verification platform is DIATF-certified and listed on the DVS Register, reflecting its early commitment to certification under the government’s trust framework.
According to SmartSearch, the confirmation validates its long-term investment in regulatory alignment and digital onboarding technology.
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.
“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 £701m 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 expected to accelerate adoption of certified digital identity tools across financial services, legal, property and gambling sectors, where compliance burdens remain high and enforcement action continues to intensify. By formally recognising DIATF-certified services as compliant with Regulation 28 requirements, the government has addressed one of the most persistent questions facing compliance teams: whether digital checks alone are sufficient under the law.
Industry observers suggest the decision could encourage broader investment in RegTech solutions, particularly among smaller firms seeking cost-effective ways to meet AML standards without increasing operational risk. With the government estimating £701m in annual economic benefits from widespread digital identity adoption, the regulatory clarity may serve as a catalyst for further digital transformation across the UK’s regulated economy.
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