- Estate agents and banks can rely on certified digital ID for AML checks.
- Firms remain legally responsible for compliance decisions.
- Experts warn technology does not replace risk assessment.
Estate agents, banks and other regulated firms across the UK can now use certified digital identity services to meet anti-money laundering requirements, after fresh government guidance clarified the rules around AML identity verification.
The updated guidance confirms that digital identity checks approved under the UK Digital Identity and Attributes Trust Framework meet the standard required for customer due diligence under the Money Laundering Regulations. For firms handling property deals, financial transactions or high-value goods, the move could remove long-standing uncertainty around whether digital ID tools are fully compliant.
For many in the sector, the change may offer reassurance rather than a revolution. Digital onboarding has been widely used for years, but questions lingered over whether those checks alone would stand up to regulatory scrutiny.
Clearing up confusion across regulated sectors
The clarification applies to a broad group of businesses covered by Money Laundering Regulations. That includes banks, investment firms, estate agents, art dealers and high-value goods traders.
Seyfi Günay, chief revenue officer at AML platform SmartSearch, reportedly said the new guidance addresses hesitation that had slowed adoption, particularly among smaller firms. He said many businesses were unsure whether digital identity checks would fully satisfy regulatory expectations, especially those without dedicated compliance teams.
That uncertainty may have led some firms to stick with paper-based or hybrid processes, even as transactions increasingly move online.
The government’s position now appears clearer: certified digital identity services can be used to meet identity verification requirements. However, that does not mean compliance responsibilities shift elsewhere.
Technology helps, but risk still sits with firms
Industry figures have been quick to stress that digital ID verification is only one part of the compliance picture.
Amy Shields, commercial director at SmartSearch, reportedly said that while digital services can confirm a person’s identity, they do not assess the wider context of a transaction. In property deals, for instance, questions around source of funds or unusual transaction patterns still require judgement.
“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,” she said, as quoted in a news report.
The guidance makes a similar point. Regulated businesses must still demonstrate consistent processes and documented reasoning in their compliance files, regardless of whether checks are carried out digitally or face to face.
In practice, that could mean firms feel more confident adopting certified digital identity services, but remain cautious about treating them as a complete solution. As enforcement around anti-money laundering continues to tighten, the emphasis appears to remain on accountability rather than automation.
The full guidance is available through the official gov.uk website.
