Coadjute, the governance, risk management and compliance platform backed by Lloyds Banking Group, NatWest and Nationwide, today announced that it has been accepted into the Financial Conduct Authority’s (FCA) AI Live Testing - marking a major milestone in the use of artificial intelligence to strengthen anti-money laundering (AML) compliance across the property sector.
The announcement comes at a pivotal moment for conveyancers and legal professionals. In October 2025, the UK Government confirmed that the FCA will become the single professional services supervisor for AML, replacing the Solicitors Regulation Authority (SRA) in this role. This transition signals a fundamental shift in regulatory approach - from guidance-led oversight to a more consistent, enforcement-driven regime.
Under the new framework, firms can expect significantly increased scrutiny, with a stronger emphasis on proving that AML policies are effective in practice, not simply documented. Industry experts anticipate more frequent “skilled person” reviews, greater enforcement activity, and rising compliance costs.
There will also be increased focus on core risk areas such as Source of Funds and Source of Wealth, with regulators expecting firms to demonstrate a clear, evidence-based understanding of client risk-rather than relying on basic document collection alone.
While the SRA is expected to retain AML responsibilities through 2026, the transition period introduces additional complexity, including the risk of overlapping investigations from both regulators. Conveyancing firms are therefore being urged to act now: strengthening internal controls, improving data quality and record-keeping, and ensuring senior management accountability for compliance outcomes.
Coadjute’s inclusion in the FCA’s AI Live Testing places it at the forefront of regulatory innovation. The live testing enables firms to test cutting-edge AI solutions in a controlled environment, working directly with the regulator to shape the future of compliant, technology-driven financial services.
Building on its “AI-native” platform, designed from the ground up to embed artificial intelligence into AML workflows, Coadjute is uniquely positioned to help conveyancers meet the demands of this new regulatory landscape.
Its platform combines advanced automation, a unique risk engine optimised for the property market, and human compliance expertise to deliver a fully managed AML service. This includes identity verification, source-of-funds and source-of-wealth analysis, enhanced due diligence, and audit-ready reporting, all designed to stand up to increased regulatory scrutiny.
Recent innovations, such as its digital human assistant “Clara,” demonstrate how AI can improve both compliance outcomes and client experience, guiding buyers and sellers through AML processes while ensuring completeness and accuracy.
Coadjute’s credibility is underpinned by its backing from the UK’s three largest mortgage lenders - Lloyds Banking Group, NatWest and Nationwide - and its prior collaboration with the Bank of England. Through the FCA, the company will continue working closely with regulators and industry stakeholders to help define best practices for AI-driven AML compliance.
For conveyancers, the message is clear: the regulatory bar is rising, and firms must be able to demonstrate that their AML processes - particularly in high-risk areas - are robust, consistent and effective in practice.
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”. She said, "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, Co-founder and COO of Coadjute, said: “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 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.”