Coadjute, the governance, risk management and compliance platform backed by Lloyds Banking Group, NatWest and Nationwide, has announced that it has been accepted into the Financial Conduct Authority’s (FCA) AI Live Testing Sandbox.
This marks a major milestone in the use of AI 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.
New regulatory reality for conveyancers
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 Sandbox places it at the forefront of regulatory innovation. The sandbox 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.
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 Sandbox is a significant step forward, not just for Coadjute, but for the entire industry.
