The MyIdentity scheme is moving closer to enhancing identification (ID) and anti-money laundering (AML) checks in new home sales for all parties following the conclusion of a three-month consultation period, its founder has said.
The scheme aims to provide a set of standards specific to the property industry to allow parties to work together and share information quickly and securely meanwhile reducing the risk of errors.
The new process removes the requirement for a customer to show their ID, and other details, separately to a number of different parties through their purchase journey and having to upload different information onto different systems. Customers will instead have to prove their ID just once in the home buying process.
The MyIdentity overlay scheme sits within the Department for Science, Innovation and Technology (DSIT) digital identity framework – set to be underpinned by the Data Protection and Digital Information Bill – to ensure standards are being followed and kept up to date. Providers can become certified within the framework to evidence their compliance.
Stuart Young, MD, and founder of MyIdentity, said there has been a “strong response rate” from homebuilders until now having worked beside the Home Builders Federation (HBF) in developing the government-backed scheme standards:
“84 HBF members responded to the consultation’s survey which was supported by one-to-one in-depth interviews with a range of different sized builders from across our membership groups. This enabled us to delve deeply into the required standards, processes, and procedures to help all new home builders comply with their regulatory obligations and ensure alignment to planned government legislation.
The output has been the development of two new standards, which go over and above the standards set out by DSIT to facilitate the selling of a home but are compliant with the DIATF (Digital Identity & Attributes Trust Framework) and HM Land Registry’s ‘safe harbour’.”
MyIdentity is also in conversation with other key stakeholders such as the Law Society, the Solicitors Regulation Authority, the Council for Licensed Conveyancers, the Society for Licensed Conveyancers, and the Conveyancing Association for their review of the standards. Young said:
“Keeping each group in separate stakeholder groups allows us to understand their specific needs, then we were able to align and marry those standards for everyone.”
Once the initial ID check is done, the customer will then share it with the conveyancer, broker, lender, and others to reduce friction and help improve the home buying and selling process, say MyIdentity.
The standards include provisions for anti-money laundering, source of funds, source of wealth, and more. Because of how high they are set, all parties will accept the ID thus helping the transaction proceed smoothly, said Young.
“This does not absolve anyone of their obligations,” he added, though if IDSPs are certified by the government or industry, conveyancers can rely on the Anti-Money Laundering Regulations 2019 for protection.
Trials of the scheme are set to begin from this month. An online industry briefing session is being held on Wednesday the 22nd March at 3pm for those involved in the new-build sector. For more details, contact: s.young@etive.org.
