As artificial intelligence, automation, and digital platforms become more sophisticated, the legal landscape is rapidly evolving. Future legal technology is not just transforming how lawyers practice law; it is redefining the efficiency, structure, and value proposition of the entire legal workplace.
With increasing pressure on law firms and corporate legal departments to do more with less, Jonathan Stebbings, Chief Commercial Officer at tmGroup, explains how technology is emerging as the central lever for workplace efficiency and strategic decision-making.
The UK property market, worth trillions of pounds, represents one of the most financially and legally sensitive sectors of the economy. Property transactions represent some of the most significant financial exchanges individuals or businesses will ever undertake, with law firms at the trusted heart of matters. With such high stakes involved, ranging from financial security to legal compliance, the verification of customer identity (ID) and proof of funds is more critical than ever. As property markets become more complex and regulatory environments tighten, relying on accurate, trusted data sources is not merely a best practice; it’s a legal and ethical necessity.
The Need for Customer ID Verification
Customer due diligence (CDD) is mandated under the Money Laundering Regulations 2017, which apply to estate agents, conveyancers, solicitors, and other property professionals. These rules aim to combat money laundering, terrorist financing, and fraud, all of which have historically exploited the property sector due to its high transaction values and complexity. Conveyancers must follow rules set by the SRA and HM Land Registry (HMLR), which actively encourage high-grade digital ID verification via its “Safe Harbour” standard.
Know Your Customer (KYC) requirements have been a standard part of property transactions for many years, given Conveyancing’s historically poor track record for fraud compliance relative to other parts of the law firm. As we know, property was one of the easiest ways to wash quantities of dirty money into an asset through a single transaction. Unsuspecting estate agents and conveyancers are at the risk frontline for vetting ahead of completion.
False identities, stolen credentials, or fraudulent actors not only threaten the integrity of individual deals but also expose the entire property market to systemic risk.
Relying on physical documentation is problematic because of the high risk of forgery, which, matched with manual human error, lays a firm wide open. There has also been a recent well-publicised example of ID created by AI and enhanced with Photoshop to put someone’s photo alongside another’s identity. This was accepted automatically by an organisation (not a law firm) simply as an attachment without deeper checks. By simply uploading this fake AI-produced ID without verification, it’s as good as a non-verified paper copy.
That’s why digital identity verification backed by trusted data sources is becoming the norm. Solutions that access government databases, credit reference agencies, or biometric identification systems add layers of verification that are harder to spoof. For the AI example, it would uncover that the facial recognition does not match the formal record.
The Role of Fund Verification
Alongside identity checks, verifying the source and sufficiency of funds is vital. Whether a buyer is financing a home with savings, a mortgage, or overseas investments, property professionals must ensure that the origin of the funds is legitimate and traceable.
This step is not just about validating that the buyer has enough money; it’s about understanding where that money came from. Anti-Money Laundering (AML) regulations require that real estate professionals recognise red flags, such as large cash transactions, offshore trusts, or sudden, unexplained wealth.
It’s important to take a risk-based approach. For more complex cases, such as buyers using overseas funds, corporate structures, or large gifts, additional documentation like inheritance letters, company financials, or evidence of share sales may be needed. This protects everyone in the chain. For sellers, it reduces the risk of deal collapse due to unreliable funding. For buyers, it prevents delays or legal scrutiny post-transaction. For professionals, it ensures compliance with the regulator.
Digital solutions, like tmVerify365, are now interrogating bank statements, investment records, inheritance paperwork and gift declarations and matching them to the source in real-time. The days of phoning each institution are long gone.
The Importance of Trusted Data Sources
The reliability of any ID verification system lies squarely with the quality of the data sources interrogated. Government databases are clearly the gold standard, whether driving licences, voter rolls or passports, together with banks, building societies and credit reference agencies. But the extra layer of protection comes from secure open banking platform technology. Platforms such as tmVerify365 connects, with the customer’s consent, to bank data for real-time verification of bank balances and transactions. A tamper-proof and hygienic way of making direct enquiries without another intermediary involved.
Digital Transformation and Automation
Digital transformation is revolutionising customer due diligence in property transactions. The use of apps like tmVerify365 ensures that law firms can confidently outsource the admin burden through a user-friendly interface that is intuitive to their customer. It will also self-filter against those who would seek to defraud, in the full knowledge of what the verification will check against.
By becoming a standard feature of onboarding, the incidence of fraud and risk of non-compliance for the firm can all but evaporate. Equally, customers are provided with an interface that reduces the potential complexity of what and how they need to produce and is an overall less daunting experience than it could be for some people.
Legal and Ethical Implications
There is a wider argument here, too. Law and conveyancing firms are trusted guardians of oversight and the gatekeepers of integrity. Their customers trust them to use accurate, trusted data for their wider due diligence, and that logically extends to how they apply verification clearance. You can argue that conveyancers have a moral duty to prevent property from becoming a haven for illicit finance.
Yes, the punitive stakes are also high for the firm and the conveyancer. Failure to comply can result in fines, professional sanctions, and even criminal prosecution. The National Crime Agency (NCA) and HM Revenue & Customs (HMRC) are increasingly scrutinising property transactions, particularly those involving offshore buyers, large cash payments, or complex ownership structures. For the firm, formal sanctions could mortally wound a reputation so hard fought for.
Conclusion
Embracing verification tools with a trusted and robust platform that is well integrated with other parts of the conveyancing process should be standard practice today for conveyancers. This improves accuracy, speeds up onboarding, enhances client satisfaction, and demonstrates robust compliance with regulators and industry bodies.
tmVerify365 uses biometric NFC checks, open banking, sanctions/PEP screening, and secure digital signatures, getting users onboard in minutes. With full audit trails, secure document storage, and SRA / AML regulatory readiness, it can also streamline checks between agents and conveyancers so that onboarding moves from being a source of friction to a competitive advantage.
For more information about tmVerify365, call us today on 0800 840 5571 or contact us for more information
Jonathan Stebbings is Chief Commercial Officer at tmGroup
