Coadjute has joined the Financial Conduct Authority’s AI Live Testing programme as conveyancing firms prepare for a more demanding anti-money laundering regime under planned supervisory reforms.
The compliance technology firm said its acceptance into the FCA initiative comes as conveyancers and other legal professionals assess the likely impact of the government’s October 2025 decision to move to a single professional services supervisor for anti-money laundering, with the FCA set to take on that role.
For conveyancers, the shift is expected to bring greater scrutiny of how anti-money laundering controls operate in practice, particularly around source of funds and source of wealth checks, alongside a more enforcement-led approach.
REGULATORY SHIFT
Coadjute, which is backed by Lloyds Banking Group, NatWest and Nationwide, is positioning its platform around that change. The business said its system combines automation, risk assessment and managed compliance support for tasks including identity verification, source-of-funds analysis, enhanced due diligence and reporting.
The company said recent product development has included its digital assistant, Clara, which is designed to guide buyers and sellers through anti-money laundering checks while improving the quality and completeness of information collected.
The wider point for the property sector is that conveyancers may face more pressure to show not simply that policies exist, but that they can evidence consistent decision-making and maintain records that would stand up to closer examination.
INDUSTRY PRESSURE
The planned reform is expected to increase compliance expectations, with firms needing to demonstrate that processes are robust and effective, rather than relying on documentation alone. The transition period is also likely to add complexity, with the potential for overlapping oversight before the new regime is fully embedded.
Jessica Rusu, chief data, information and intelligence officer at the FCA, said: “Our new AI Live Testing service helps firms who are ready to use AI in live markets… we’re helping to make sure that AI is developed and deployed safely and responsibly in UK financial markets.
“We want financial firms and their customers to benefit from AI, so we’re providing a safe space to test how they plan to use it.”
John Reynolds (pictured), co-founder and COO of Coadjute, added: “Conveyancers are entering a new era of AML regulation – one that demands demonstrable effectiveness, not just good intentions.
“Our acceptance into the FCA’s AI Live Testing Sandbox is a significant step forward, not just for Coadjute, but for the entire industry.
“We are working hand-in-hand with regulators and major industry participants to define how AI can be used responsibly to raise standards, reduce risk and make compliance more robust and more efficient.
“Our focus is simple: to give conveyancers the tools they need to meet – and maybe even exceed – the expectations of the FCA.”
