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Buying, selling or letting a home comes with legal hurdles, financial pressures, and plenty of confusing advice—so it matters who’s by your side. Property agencies that are Certified and Accredited by Propertymark have voluntarily chosen to be independently regulated, but what does that mean?
From 14 May 2025, all UK letting agents will be required to check tenants, landlords, and other clients against the UK’s official sanctions list. If a match is found — or even suspected — agents will be legally required to report it to the Office of Financial Sanctions Implementation (OFSI). Sanctions checks are already a standard part of Anti-Money Laundering (AML) due diligence, but for the first time, these checks will now be a separate legal requirement in their own right. Propertymark Industry Supplier, The Letting Partnership, explores the new requirements.
A sanctions check is a screening process used to determine whether a person or organisation appears on a government or international sanctions list.
These lists may include individuals or entities linked to:
Sanctions checks are intended to prevent individuals or businesses involved in criminal or high-risk activity from entering into contracts — including tenancy agreements.
If a person or company is identified on the UK sanctions list, or if there is reasonable cause to suspect they are, the agent is legally required to freeze any property or assets and report the matter to OFSI immediately.
Although Politically Exposed Persons (PEPs) are often flagged during AML checks, PEPs and sanctions are not the same:
Some PEPs do appear on sanctions lists, especially if involved in illicit activity — which is why many providers screen for both together.
Letting agents are now defined as “relevant firms” under the UK’s updated financial sanctions regulations. This classification means they are subject to the same duties as estate agents, law firms and financial institutions in terms of identifying and reporting designated persons.
This change brings letting agents fully into the sanctions enforcement framework. Failure to comply can lead to serious consequences, including civil penalties and potential criminal prosecution.
From 14 May 2025, letting agents will be required to:
For agents already registered for AML supervision, sanctions checks may already be included in the customer onboarding process. However, the updated rules apply to all letting agents — not just those exceeding the AML income threshold.
This means sanctions screening must now form part of the standard Know Your Customer (KYC) process for every landlord and tenant, regardless of rent levels or registration status.
It’s important to let landlords and tenants know that agents are now legally required to confirm their identity and check whether they appear on the UK’s financial sanctions list. This may occasionally cause small delays when securing tenants, but it’s a necessary step to remain compliant.
Note: The AML supervision threshold stays the same — agents don’t need to register for AML supervision unlessthey handle monthly rents over £10,000.
There are several ways to check if someone is on the sanctions list:
If using the official lists manually, you’ll need to search names carefully and document your results.
Letting agents should ensure their teams are prepared for the upcoming changes:
For further information on this subject read the government’s General Guidance to UK Sanctions.
The Letting Partnership was created with the express purpose of supporting and promoting professionalism within the property industry specifically in the areas of client accounting and Client Money Protection.
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New sanctions rules: a letting agent's guide – Propertymark
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