Digital ID boost for AML checks: DSIT and HMT issue guidance for MLR compliance
Today, (26 February) HMT and DSIT unveiled their long-awaited guidance, outlining clearly that digital verification solutions certified under the Trust Framework, and appearing on the DVS register, can be reliably utilised to conduct AML checks.
In July 2025, the government announced that HMT and DSIT would be developing joint guidance on how companies that fall within the MLRs, could leverage digital ID solutions for AML/KYC checks.
As new technologies emerge and global economic crime threats persist, it is vital that businesses have effective tools to detect and prevent illicit finance. Digital ID has been viewed as a critical technology for fraud prevention, streamlined AML compliance as well as faster, safer and more inclusive customer journeys. However, whilst regulations already permit digital ID for customer due diligence, uptake has been limited due to legacy processes, cultural habits, and concerns about clear guidance.
This announcement has been paired with the Government’s Payments Forward Plan, which provides a roadmap for strategic focuses across Digital ID, fraud prevention, open banking, digital wallets and more.
techUK welcomes this as a positive step, setting consistency and pushing forward innovation in this sector.
Why was this guidance needed?
With an estimated 40% of global illicit financial flow passing through the City of London and the Crown Dependencies, the potential impact of stronger fraud prevention in the UK is significant. The digital identity and verification sector is both capable and ready to support this effort. Research identifies 239 UK-based digital ID companies, 85% of which are engaged with customers within financial and professional services. This demonstrates not only market maturity, but a synergistic opportunity between digital identity solutions and the sectors most exposed to financial crime.
In December, techUK wrote to DSIT and HM Treasury setting out our members’ priorities for the forthcoming guidance on enabling firms to adopt digital ID solutions to meet their obligations under the Money Laundering Regulations (MLRs). We emphasised that the guidance must be clear, practical and explicitly support the use of Digital Verification Services certified under the Digital Identity and Attributes Trust Framework, ensuring consistent policy, reducing duplication and avoiding confusion across the sector.
We are delighted to see this point reflected in the guidance.
"techUK are delighted to see the publication of the Payments Forward Plan at such an important moment for the sector. The roadmap provides much needed clarity across retail, wholesale and cross-border payments, whilst the government commitment to support digital ID and digital tools to reduce fraud and enable new possibilities is a positive step forward in line with what techUK has been advocating for. We look forward to continuing our engagement with HMT, FCA and PSR as they set out their plan in a way that will also support the DVS sector and align with the Digital ID Trust Framework.”- James Challinor, Head of Financial Services, techUK
techUK are delighted to see the publication of the Payments Forward Plan at such an important moment for the sector. The roadmap provides much needed clarity across retail, wholesale and cross-border payments, whilst the government commitment to support digital ID and digital tools to reduce fraud and enable new possibilities is a positive step forward in line with what techUK has been advocating for. We look forward to continuing our engagement with HMT, FCA and PSR as they set out their plan in a way that will also support the DVS sector and align with the Digital ID Trust Framework.
James Challinor
Head of Financial Services, techUK
Now it’s time to turn policy into progress.
With this important government policy enablement in place, the path is clear to accelerate digital identity adoption.
techUK stands ready to support the next phase of adoption across AML and KYC, both within financial services and in wider sectors such as property and legal services.
To learn more about techUK’s work on digital identity, fraud prevention and financial services, please get in touch.
Digital Identity programme activities
Digital identities will provide a gateway for citizens and SMEs into the digital economy. techUK members demonstrate the benefits of digital identity to emerging markets, raise their profile as thought leaders, influence policy outcomes, and strengthen their relationships with potential clients and decision-makers. Visit the programme page here.
techUK Digital ID Report
Following the UK Government’s announcement on the introduction of mandatory digital ID on 26 September, techUK has published a new report outlining a clear roadmap to support the successful and trusted rollout of digital ID across the country.
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Sue leads techUK's Technology and Innovation work. This includes work programmes on AI, Cloud, Data, Quantum, Semiconductors, Digital ID and Digital ethics as well as emerging and transformative technologies and innovation policy. In 2025, Sue was honoured with an Order of the British Empire (OBE) for services to the Technology Industry in the New Year Honours List. She has also been recognised as one of the most influential people in UK tech by Computer Weekly's UKtech50 Longlist and was inducted into the Computer Weekly Most Influential Women in UK Tech Hall of Fame.
A key influencer in driving forward the tech agenda in the UK, in December 2025 Sue was appointed to the UK Government’s Women in Tech Taskforce by the Technology Secretary of State. She also sits on the UK Government’s Smart Data Council, Satellite Applications Catapult Advisory Group, Bank of England’s AI Consortium and BSI’s Digital Strategic Advisory Group. Previously, Sue was a member of the Independent Future of Compute Review and co-chaired the National Data Strategy Forum. As well as being recognised in the UK's Big Data 100 and the Global Top 100 Data Visionaries in 2020, Sue has been shortlisted for the Milton Keynes Women Leaders Awards and has been a judge for the Loebner Prize in AI, the UK Tech 50 and annual UK Cloud Awards. She is a regular industry speaker on issues including AI ethics, data protection and cyber security.
Prior to joining techUK in January 2015, Sue was responsible for Symantec's Government Relations in the UK and Ireland. Before that, Sue was senior policy advisor at the Confederation of British Industry (CBI). Sue has an BA degree on History and American Studies from Leeds University and a Master’s Degree in International Relations and Diplomacy from the University of Birmingham. Sue is a keen sportswoman and in 2016 achieved a lifelong ambition to swim the English Channel.
Associate Director - Technology and Innovation, techUK
Laura Foster
Associate Director - Technology and Innovation, techUK
Laura is techUK’s Associate Director for Technology and Innovation.
Laura advocates for better emerging technology policy in the UK, including quantum, future of compute technologies, semiconductors, digital ID and more. Working alongside techUK members and UK Government she champions long-term, cohesive, and sustainable investment that will ensure the UK can commercialise future science and technology research. Laura leads a high-performing team at techUK, as well as publishing several reports on these topics herself, and being a regular speaker at events.
Before joining techUK, Laura worked internationally as a conference researcher and producer exploring adoption of emerging technologies. This included being part of the team at London Tech Week.
Laura has a degree in History (BA Hons) from Durham University and is a Cambridge Policy Fellow. Outside of work she loves reading, writing and supporting rugby team St. Helens, where she is from.
Elis joined techUK in December 2023 as a Programme Manager for Tech and Innovation, focusing on Semiconductors and Digital ID.
He previously worked at an advocacy group for tech startups, with a regional focus on Wales. This involved policy research on innovation, skills and access to finance.
Elis has a Degree in History, and a Masters in Politics and International Relations from the University of Winchester, with a focus on the digitalisation and gamification of armed conflicts.
