State ID Cards: How They Could Transform Client Due Diligence in Conveyancing

The way conveyancers carry out client due diligence (CDD) could change more in the next five years than it has in the past twenty. If the United Kingdom adopts state-issued identity cards, either in physical or digital form, the process of verifying clients’ identities may become faster, more secure, and less burdensome for both lawyers and clients.

Other countries already use government-issued identity credentials as the foundation for property and financial transactions, and in many cases these can be accessed directly from a smartphone wallet. This shift has streamlined legal and financial processes, reduced fraud, and given professionals greater certainty in their regulatory obligations. The UK has an opportunity to benefit from these developments, and some of the building blocks are already being put in place.

Across Europe, the revised eIDAS 2.0 framework is delivering the European Digital Identity Wallet, allowing citizens to log in securely and sign transactions electronically across borders. In the United States, mobile driver’s licences are rolling out, enabling individuals to prove their identity contactlessly from their phones. Estonia has long been the benchmark for identity-led services, with a national e-ID system that underpins everything from banking to tax filing. In India, Aadhaar-based e-KYC has made remote identity checks the norm,  significantly cutting completion times. Meanwhile, in the UK, the Digital Identity and Attributes Trust Framework and HM Land Registry’s Practice Guide 81 are pointing towards a future of standardised, digital-first identity verification.

The implications for conveyancers are significant. Instead of examining a passport or driving licence and assessing whether it appears genuine, firms could verify a cryptographically signed credential issued directly by a government authority. This approach provides a far higher degree of certainty, replacing manual reviews with reliable, pass-or-fail verification. For clients, it means a smoother process that can often be completed remotely in minutes, rather than requiring in-person appointments or lengthy correspondence.

A major benefit is the possibility of re-using verified identities across multiple firms. In Europe, the new identity wallet system is designed to allow individuals to allow their identity data to different organisations without repeating the verification process each time. Applied in the UK, this would reduce duplication of checks and allow conveyancers to focus more of their time on critical tasks such as analysing source of funds and source of wealth.

Liability may also be clarified. Under European frameworks, governments and issuers take responsibility for the identity credentials they provide. Similarly, HM Land Registry has already introduced its “Safe Harbour” provisions, which protect conveyancers who adopt approved digital identity standards. This development could give firms greater confidence that, provided they follow the prescribed processes, they will not be held liable for fraud committed using a properly verified digital identity.

Of course, while state-issued ID would make common types of fraud such as forged passports or fake driving licences more difficult, new risks will emerge. Firms and their technology providers will need to guard against threats such as device compromise, spoofed consent, and the use of deepfakes to bypass liveness checks. The focus of fraud prevention will shift from spotting bad documents to ensuring the integrity of the technology used.

In practice, a future client due diligence process might look like this, a client receives an invitation to complete ID verification via a secure application. They present their state-issued ID through a wallet or by scanning a physical card. The system verifies it cryptographically, conducts a biometric match to confirm liveness, and records an audit log. The lawyer then completes the usual checks against sanctions and politically exposed persons lists, along with source of funds enquiries. If the process meets the required standards, the firm records it as Safe Harbour, ensuring both compliance and protection against liability.

For firms in England and Wales, preparation is key. Policies should be updated to reflect HM Land Registry guidance and the Trust Framework. Vendors should be assessed for their ability to handle issuer-signed credentials and advanced biometric checks. Staff should be trained to understand what a verified identity means and when further scrutiny is required.

It is also important to remember that not all clients will have access to smartphones or digital wallets, so inclusive alternative routes must remain available. In addition, firms should only request the identity information they need for compliance, keeping client data handling to a minimum. Finally, given that UK national identity policy is still a live political debate, conveyancers should focus on solutions that are flexible and interoperable, rather than tying themselves to a single system.

The bottom line is that state-issued ID cards and digital credentials could transform client due diligence in conveyancing. They move the process from “does this document look real?” to “has the issuing authority vouched for this individual, and is there a tamper-proof record of that verification?” Firms that prepare now will be better placed to take advantage of faster onboarding, stronger fraud controls, and greater protection under regulatory standards. Most importantly, they will be able to offer clients a smoother, more modern experience at a stage of the property transaction that is often seen as a hurdle.