Over the last few months, there have been several significant developments in the field of digital identity verification, primarily driven by the government’s new Data (Use and Access) Bill.
Commonly referred to as the Smart Data Bill, this legislation is central to the government’s plan to modernise the economy, covering aspects from digital ID verification to new smart data schemes and data protection reforms. The bill aims to streamline processes such as proving age for purchasing age-restricted items or managing property transactions through the digitisation of property data.
A New Era for Digital Verification Services
The bill builds upon the existing Digital Identity and Attributes Trust Framework (DIATF), elevating it from its current developmental phase into formal legislation. Identity verification providers, referred to as Identity Service Providers (IDSPs) in the framework, must undergo rigorous assessments against government-defined standards to achieve certification. This includes examinations of their technology, security protocols, and operational processes.
Currently, the Home Office recommends that landlords, their agents, and employers use an IDSP certified against the framework for Right to Work and Right to Rent checks, as well as for Disclosure and Barring Service (DBS) checks.
Although the use of certified IDSPs has been endorsed as best practice by organisations such as the Conveyancing Association and the Digital Property Market Steering Group (DPMSG), it has not yet been mandated.
This may soon change, as the Money Laundering Regulations specify that when using a digital verification service, it “must be accredited or certified to offer the identity verification service through a governmental or industry process that involves meeting minimum published standards.” This requirement has not been enforced previously, as the DIATF has been in development. However, with the bill’s passage, enforcement could soon follow.
Additionally, a new register of certified IDSPs and an officially sanctioned Trustmark will be introduced, making it easier for law firms to conduct due diligence on potential vendors that meets the MLR regs.
Will We See a National Digital ID Card?
Both the current and previous governments have made their stance clear: there will be no national digital ID card. Instead, through the Trust Framework, vendors will have the ability to create their own digital or shareable wallets for identity verification.
However, what we do know is that the government will be introducing a digital alternative to the current driver’s license. These digital licenses will be available through the government’s new digital wallet, enabling faster and more efficient issuance of new licenses. The government envisions that digital driver’s licenses will be widely accepted in locations such as pubs, cinemas, and other venues where proof of age is required.
While the creation of a digital driver’s licence is a major step forward, one key advantage of digital verification is the ability to do so remotely. If the new digital driver’s license is only accessible through a government app and cannot be shared remotely with third parties, it may complicate the ID verification process rather than streamline it.
The coming months will be pivotal in determining how these regulatory changes will impact the legal sector, particularly in how law firms and other businesses adopt digital identity verification solutions to enhance compliance and operational efficiency.Based in Cardiff, Credas is a UK Government Digital Identity and Attributes Trust Framework certified Identity Service Provider. Credas can streamline your onboarding process using its market-leading technology to revolutionise the way you manage compliance and due diligence through the X-Press Legal Services ICOS platform