The Digital ID Standard celebrates three years of innovation and continued development

In the evolving landscape of property transactions, HM Land Registry's Digital ID Standard has proven to be a pioneering force, setting the "gold standard" in the realm of technology adoption within the homebuying sector. Launched three years ago, this innovative initiative has established a clear framework for the integration of digital identification, effectively combating fraud and money laundering in real estate transactions.

The Digital ID Standard, unveiled on March 12, 2021, serves as a comprehensive guide for conveyancers, offering a step-by-step list of requirements for utilising digital services to securely and conveniently verify clients' identities online. Aligned with anti-fraud and anti-money laundering obligations, the standard provides a Safe Harbour for compliant conveyancers, assuring that HM Land Registry will not pursue legal action in case a client's identity is misrepresented.

This ground-breaking standard has not only streamlined identity verification but also introduced a level of convenience that transcends traditional methods. Homebuyers now have the flexibility to prove their identity at any time, without the need for physical meetings. This applies to both residential and commercial clients, enhancing the overall efficiency of property transactions. Additionally, the standard mandates the use of smartphones to extract encrypted information from documents like passports, adding an extra layer of security to the process.

Sam Ruback, General Counsel at Thirdfort, a client compliance platform, commends the Digital ID Standard, stating, "Three years on, the HM Land Registry scheme is the gold standard for digital ID verification. It has provided clarity for conveyancing firms, while helping drive greater digital adoption and helping protect against fraud."

However, despite its success, Thirdfort points out that the standard remains somewhat of an outlier and urges other regulators to mirror this approach. While various developments, including the UK Digital Identity & Attributes Trust Framework (DIATF), aim to establish trust in digital identity products, the targeted Safe Harbour approach of HM Land Registry has not been widely replicated.

Sam Ruback sees a substantial opportunity for all regulators involved in fraud and economic crime supervision to adopt a similar approach, fostering a more uniform adoption of digital tools. This could contribute significantly to protecting society from fraud and money laundering while assisting professionals in meeting regulatory requirements.

Simultaneously, HM Land Registry continues to refine and expand the Digital ID Standard. Plans include broadening its scope to incorporate different legal entities and exploring more enhanced digital means of obtaining evidence to link parties to specific property transactions.

Mike Harlow, General Counsel, Deputy Chief Executive, and Deputy Chief Land Registrar, emphasises the significance of the Digital ID Standard, saying on inceptiom, "This new standard for digital biometric identity checking marks an exciting milestone towards a truly digital conveyancing process."

In response to the ongoing advancements, the Department for Digital, Culture, Media & Sport (DCMS) is developing an overarching trust framework for digital identity use across the economy. HM Land Registry is committed to close collaboration with DCMS to ensure alignment and drive forward the future of secure, efficient, and digitally-driven conveyancing processes.