Thirdfort has welcomed new Government guidance clarifying how digital identities can be used to comply with the UK’s Money Laundering Regulations (MLRs).

The compliance platform has described it as a “significant and timely step” for regulated sectors including property, legal and financial services.

The guidance, published by the Department for Science, Innovation and Technology (DSIT) and HM Treasury, outlines how certified digital identity services can support customer due diligence (CDD) checks under the Money Laundering Regulations.

It confirms that firms can use digital identities certified under the UK Digital Identity and Attributes Trust Framework to meet identity verification requirements, providing additional clarity on how technology can be deployed within existing AML rules.

Thirdfort co-founder and chief product officer, Jack Bidgood, said: “Digital identity and AML technology are already embedded within the compliance frameworks of many regulated firms, particularly in property and legal services. The latest government guidance provides helpful clarity for those businesses that wanted explicit confirmation of how certified digital identity services can be used to meet Money Laundering Regulations requirements. It is a positive and pragmatic step towards modernising compliance.”

However, Bidgood stressed that further alignment is required to ensure consistent supervisory interpretation and interoperability across sectors.

He added: “Clear recognition of certified digital identity services reduces uncertainty and gives firms greater confidence to invest in technology. The next step is ensuring regulators and supervisors apply this consistently and work towards harmonised technology standards, so professionals are not left navigating fragmented interpretations of the same rules.”