UK Treasury and DSIT Publish Guidance Formally Recognizing DVS for AML Compliance

HM Treasury and the Department for Science, Innovation and Technology (DSIT) have published joint guidance confirming that certified Digital Verification Services (DVS) can be used by regulated firms to meet identity verification requirements under the UK’s Money Laundering Regulations (MLRs).

The guidance, released through the Office for Digital Identities and Attributes (OfDIA), marks the first time the government has formally recognized the UK Digital Identity and Attributes Trust Framework as a valid compliance pathway under anti-money laundering rules. Regulated entities, including financial services firms, estate agents, and gambling operators, can now use certified and registered DVS providers to satisfy their customer due diligence (CDD) obligations under Regulation 28 of the MLRs.

The document establishes that a DVS must be both certified against the trust framework and listed on the DVS Register to qualify. Uncertified services cannot be treated as reliable for MLR compliance purposes. Where firms use certified DVS, those providers are deemed to constitute a reliable and independent source of information with appropriate anti-impersonation assurance, addressing a long-standing ambiguity that had slowed adoption of digital identity in regulated onboarding workflows.

The guidance is explicit that using a certified DVS does not discharge all MLR obligations. Firms remain responsible for risk assessment, enhanced due diligence where required, and understanding the purpose of a business relationship. The document also addresses verification of company directors, noting that certified DVS can support that process as well.

The publication follows a public consultation HM Treasury concluded in 2024, in which industry groups including techUK called for clearer regulatory recognition of digital identity. The Data (Use and Access) Act 2025 placed the trust framework on a statutory footing, removing earlier uncertainty about the legal standing of certified providers. HM Treasury committed to producing joint guidance with DSIT as part of its July 2025 consultation response.

For the UK’s growing DVS market, the guidance removes a practical barrier: firms that hesitated to adopt digital identity for AML workflows for lack of explicit regulatory endorsement now have an official statement that certified services meet the standard. OfDIA maintains the DVS Register, which lists providers that have passed independent certification.

Sources: OfDIA blog, GOV.UK, GOV.UK guidance document

–
By Ali Nassar-Smith