New sanctions reporting rules come into force for letting agents

Letting agents across the UK are now subject to new legal duties under financial sanctions regulations, as updated rules come into effect today, 14 May 2025.

The extension of reporting requirements under the Sanctions and Anti-Money Laundering Act 2018 means that, for the first time, all UK letting agents must check and report any dealings with individuals or organisations subject to financial sanctions, not just estate agents as previously required.
Agents must consult the Office for Financial Sanctions Implementation (OFSI) list when engaging with prospective landlords or tenants.

If a letting agent knows or suspects a client is sanctioned – or has breached sanctions regulations – they are legally required to report it to OFSI as soon as practicable.

LANDLORD CHECKS

The rules apply regardless of the value of the rental agreement, marking a divergence from money laundering regulations, which only apply to lets over €10,000.

Letting agents are expected to check landlords upon receiving instructions and tenants only at the point a tenancy agreement is being signed. Similarly, when acting on behalf of tenants, checks on both parties are required only when an agreement is being finalised.

Industry body Propertymark has advised agents to update internal processes and ensure compliance with the regime, which forms part of the Government’s post-Brexit approach to financial enforcement.

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