Sanctions regulation checks introduced for letting agents

From 14 May 2025, letting agents must screen all potential tenants, landlords and other parties against a financial sanctions list once an offer has been accepted, prior to entering into contracts or accepting payments. If a match is found or suspected, agents are legally required to report it to the Office of Financial Sanctions Implementation (OFSI).

For agents already registered for Anti-money laundering (AML) supervision, where they handle monthly rents in excess of £10,000, the sanctions checks may already be included in the customer onboarding process. However, the updated rules apply to all letting agents, irrespective of the value of the rental agreement.

Letting agents are required to complete the following:

• Verify the identity of tenants, landlords or other parties in supporting documentation
• Check the relevant parties’ details against the UK sanctions list
• Freeze any assets or property held for a sanctioned party
• Report any matches or suspicions to the OFSI immediately
• Maintain detailed records of checks, including date of check and any actions taken

Non-compliance may result in fines, up to seven years imprisonment for serious breaches and reputational damage to the agency.