Estate agents and other regulated businesses in the UK can now use certified digital identity services to satisfy anti-money laundering (AML) identity verification requirements, following updated government guidance published this week.
The guidance confirms that digital identity checks approved under the UK Digital Identity and Attributes Trust Framework meet the standards for customer due diligence under Money Laundering Regulations (MLR).
Sector-wide impact
The clarification affects a broad range of sectors subject to MLR requirements, including banks, investment firms, estate agents, art dealers, and high-value goods traders. According to Seyfi Günay, Chief Revenue Officer at AML platform SmartSearch, the update addresses uncertainty that has previously limited adoption of digital identity solutions.
“While many regulated businesses already use digital onboarding journeys, uncertainty about whether digital identity checks fully satisfy MLR requirements created hesitation, particularly among smaller firms without in-house compliance expertise,” Günay said.
Compliance limitations
Industry professionals have cautioned that digital identity verification does not eliminate the need for broader compliance processes. Amy Shields, Commercial Director at SmartSearch, noted that digital ID services can confirm identity but do not assess contextual risk in property transactions.
“The liability still sits with the regulated business. If your file cannot show your reasoning and your process is not consistent, a slick identity check will not save you,” Shields said.
The government guidance emphasises that regulated businesses remain responsible for demonstrating consistent processes and documented reasoning in their compliance files, regardless of the identity verification method used.
The full text of the government’s guidance is available through the official gov.uk website.