Identity verification becomes core compliance infrastructure across regulated sectors

Identity verification is increasingly becoming embedded operational infrastructure across regulated industries as tighter AML, KYC and fraud-prevention requirements push organizations toward continuous, workflow-integrated compliance systems.​

Recent moves by Credas, Thirdfort and Prove illustrate how identity systems are being woven directly into operational and regulatory workflows.

Credas provides IDV to Silks

In the UK, law firms are facing stricter AML and financial crime prevention requirements. According to rules issued last year, only Identity Service Providers (IDSPs) certified against the UK government’s Digital Identity and Attributes Trust Framework (DIATF) can provide compliant digital ID verification under the Money Laundering Regulations (MLRs).

Rather than functioning as standalone onboarding checks, identity systems are increasingly being integrated directly into legal, financial and digital asset workflows, where they support risk scoring, auditability, transaction monitoring and regulatory compliance.

Silks, a platform used by mid-market law firms for automating client intake, has chosen identity verification and anti-money laundering (AML) firm Credas for client onboarding. ID verification from Credas, which is certified under DIATF, will be integrated directly into Silks’ workflows, enabling law firms to trigger identity checks with results automatically added to their compliance records.

“Our partnership with Credas means that law firms can open and onboard clients the same day of receiving an inquiry, and identity verification is no longer a separate, manual step. It’s woven into the workflow, exactly where it needs to be,” says Mel Kang, Silks founder and CEO.

ID checks are not the only compliance steps that law firms are introducing. Whether they are buying a house, setting up a new business, or establishing a family trust, clients now need to provide law firms with more information about who they are and where their money comes from. This makes the Know Your Customer (KYC) process more complex, Credas explains in a recent blog post, featuring viewpoints from legal experts.

Thirdfort refreshes platform to keep up with regulation

Identity verification companies are also adapting to new rules. Client due diligence (CDD) platform Thirdfort has re-launched its IDV platform, which includes document verification, Know Your Business (KYB) checks, AML screening and Source of Funds checks.

The UK-based firm serves regulated businesses in the legal and property sectors. The company says that the rebuild will give them a single platform that helps clients unify fragmented due diligence processes and identify hidden risks.

The platform uses AI to automate Source of Funds data extraction to surface risk, with each decision leaving an audit trail for human oversight.

“The rebuild gives us two things at once,” says Jack Bidgood, co-founder and chief product officer of Thirdfort. “For our clients, it means AI they can trust – every output shows its workings, with a human in the loop and a full audit trail. For us, it means we can move faster than ever before: adding new capabilities, responding to regulatory changes and building toward a more automated compliance workflow.”

Thirdfort has recently boosted its AML with liveness detection from iProov.

Prove provides IDV for stablecoin industry

The same infrastructure shift is also reshaping digital asset and payment ecosystems, where stablecoin providers and financial institutions face growing pressure to implement higher-assurance identity and fraud controls.

U.S.-based digital identity company Prove is integrating its identity verification and authentication tools into stablecoin payment platform Velocity.

The partnership targets banks and financial institutions building out digital asset capabilities, payment companies expanding into cross-border stablecoin trade and global enterprises seeking programmable treasury solutions, the two firms explain in a release.

Continuous verification models are becoming increasingly important as financial institutions and digital asset platforms seek to monitor identity risk beyond initial onboarding.

Prove has recently launched a new unified platform that provides continuous verification designed to mitigate AI-related risks. The platform includes Prove Key Management for adaptive authentication, Prove Identity Manager for identity monitoring and real-time alerts, and Prove Global Fraud Policy for fraud protection using network intelligence.

As regulatory obligations expand and AI-driven fraud becomes more sophisticated, identity verification is increasingly evolving from a point-in-time onboarding requirement into persistent compliance infrastructure underpinning trusted digital transactions.

Article Topics

AML  |  biometrics  |  continuous verification  |  Credas  |  digital identity  |  identity orchestration  |  identity verification  |  Prove  |  Thirdfort