On March 11 London time, HM Treasury launched a consultation aimed at improving the effectiveness of the Money Laundering Regulations (MLRs1), titled “Improving the effectiveness of the Money Laundering Regulations”2. The consultation includes consideration of how best to support the use of digital identities when verifying customers.
The MLRs cover a range of regulated sectors that may adopt digital identity services, including financial services, property transactions, gambling, and the sale of art. Digital identity services can be used to meet MLR requirements such as anti-money laundering checks, but there is no specific guidance on how certified digital identity services can be used to meet regulatory requirements in the UK.
Last year, during the digital identity and attribute adoption sprints held by the UK’s Department for Science, Innovation and Technology34, participants said that ambiguity in the relationship between the UK’s digital identity and attributes trust framework and the MLRs was a barrier to adoption. Clarifying this relationship could harness the efficiency and security benefits of digital identities across many important use cases and help fight economic crime.
Many individuals and organizations involved in work to enable the adoption of trusted digital identity services may be interested in this consultation. If you wish to respond to the consultation, you can do so here.
The consultation will run for 12 weeks and closes on June 9, 2024. The OpenID Foundation has begun preparing a response to the consultation.
- Money Laundering Regulations
- Improving the effectiveness of the Money Laundering Regulations
- Department of Science, Innovation, and Technology, DSIT
- digital identity and attribute adoption sprints
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