Digital ID Requirement For Money & Asset Transactions Moves Closer in UK

It was a wild conspiracy theory during Covid times, but recent guidance from the UK govt seems to suggest that digital ID, probably with a face scan, will soon be required to shift money, or high value items from one owner to another. Most likely it will be bigger 9K and above thresholds initially, but expect that to lower to something like 2K to snare the self employed, small businesses and HNW individuals by 2030.

Here’s the word from SmartSearch;

HM Treasury and the Department for Science, Innovation and Technology (DSIT) have published joint guidance confirming that DIATF-certified Digital Verification Services (DVS) can fulfil identity verification obligations under Regulation 28 of the Money Laundering Regulations 2017. This guidance gives regulated businesses across financial services, legal, property, gambling, and other sectors much-needed clarity and regulatory certainty when using digital identity solutions. SmartSearch’s identity verification platform is DIATF-certified and listed on the DVS Register, validating the company’s early investment in certification and its customer-first approach to identity verification.

Commenting on the announcement, Seyfi Günay, Chief Revenue Officer at anti-money laundering experts, SmartSearch, 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 £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.”