UK Advances AML with Digital IDs

Published Date : 8/14/2025 

The UK government has announced new Money Laundering Regulations (MLRs) that will allow financial institutions to use trusted digital identities for AML checks, streamlining the verification process and enhancing fraud prevention. 

Frequently Asked Questions (FAQS): 

Q: What are the new Money Laundering Regulations (MLRs) in the UK?

A: The new MLRs will allow financial institutions in the UK to use trusted digital identities for AML checks, provided the identities are from providers certified under the Digital Identity and Attributes Trust Framework (DIATF).

Q: How are trusted digital identities defined in the new MLRs?

A: Trusted digital identities are defined as those issued by providers certified under the DIATF, a process recognized by the UK Accreditation Service (UKAS).

Q: What is the impact of digital identities on fraud and compliance checks?

A: Digital identities can significantly enhance the efficiency of fraud and compliance checks, making the verification process faster and more reliable.

Q: What are the benefits for businesses using digital identities?

A: Businesses can benefit from better fraud prevention through biometrics and liveness detection, as well as improved ongoing risk monitoring and a more efficient customer onboarding process.

Q: How did the public respond to the consultation on digital identity verification for AML?

A: The Treasury received over 200 responses during the public consultation process, indicating strong interest and support for the integration of digital identity verification in AML procedures. 

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