The Joint Money Laundering Steering Group (JMLSG) has published an update on its website relating to the recent interest in digital identities and their use as part of AML/CFT procedures. It notes that it continues to monitor the regulatory framework governing AML/CFT, including in the context of digital identity.
The JMLSG identifies that it provides its own guidance on criteria that may assist firms that are considering using digital identity and electronic verification of identity. It also notes that the government’s guidance on identity checking may also be helpful for firms when exercising their own judgment in these scenarios.
In addition to the above, the Department for Digital Culture, Media and Sport is currently establishing the UK’s digital identity and attributes trust framework, which will be underpinned by legislation. The objective of this guidance is twofold:
- to recognise the status of digital identities; and
- to ensure digital identity providers are vetted and appropriately governed.