Law firms in the UK can now move client money outside standard banking hours through Kord Custody, a payment infrastructure from UK-based fintech Kord built around a sort code reserved for legal transactions. Operating under the sort code 04-10-26, the service separates legal settlements from traditional banking hours so that transfers can be completed instantly. It is open to all eligible regulated law firms across the UK, and participating firms can send funds at any time, including at weekends.
Verification moves into the payment process
Legal transactions have long relied on payment infrastructure designed for general banking rather than for legal settlements. Large client money transfers, such as those linked to property purchases or commercial matters, often take place under significant time pressure, particularly on Friday afternoons. At the same time, banks have limited visibility into the legal context behind each payment they process. According to Kord, this combination has created operational bottlenecks for firms and opportunities for fraud.
Kord Custody brings payment and verification together in a single network. Every account using the sort code belongs to a regulated firm that has completed Kord’s onboarding and verification process, so firms sending client money can identify a verified counterparty before the transfer is made. James Owusu, CEO and founder of Kord, said fraudsters often exploit uncertainty in these transactions, and that building verification into each payment is intended to help end Friday afternoon fraud. Removing the dependence on bank opening hours also gives firms more flexibility in how they schedule settlements.
Kord Custody joins existing payment and verification tools
Accounts operating under the sort code can receive payments via Faster Payments, CHAPS, and Bacs. Beyond bank transfers, Kord also supports card payments and digital wallets, including Apple Pay and Google Pay. Client funds are safeguarded with ClearBank under the Financial Conduct Authority’s (FCA) safeguarding regulations. Kord’s customer base spans estate and letting agents, law firms and conveyancers, and financial services companies.
The new service sits alongside the company’s existing products for client verification (Checkboard), eligibility checks (Kord Data), and payments (Kord Pay). Steve Carle, Kord Board Director appointed by Guinness Ventures, said Kord Custody supplies the missing link that lets law firms carry out high-value transactions backed by a full audit trail. Kiu Kim, Investment Director at Beringea and Board Director at Kord, said the infrastructure used to manage client money has not kept pace with regulation. According to Kim, Kord Custody is designed to remove that risk at source rather than insuring against it after the fact.
