HMT publishes guidance on using digital identities under the MLRs
HM Treasury (HMT) has published guidance explaining how the UK digital identity and attributes trust framework interacts with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692 (MLRs 2017). The guidance defines what a digital identity is and confirms that certified digital identity services on the digital verification services (DVS) register can be used by regulated entities as part of customer due diligence, including verifying individuals and company directors. It highlights that while certified digital identity services provide reliable, independent information with anti‑impersonation assurance, entities must still assess customer risk, apply enhanced due diligence where necessary and meet record‑retention obligations. The guidance further explains that the trust framework, developed in 2020, sets technology‑agnostic and sector‑agnostic requirements for providers, with certification overseen by the United Kingdom Accreditation Service (UKAS) and maintained by the Office for Digital Identities and Attributes, while non‑certified services cannot be considered suitable for identity verification under the MLRs 2017.