Starting 14th May 2025, new regulations will change how UK letting agents handle Landlord and Tenant verifications, particularly regarding sanctions checks. From that date, letting agents must comply with the same reporting requirements as other “relevant firms” under financial sanctions legislation — regardless of the rental amount.
What Are Sanctions Checks?
Commonly known as Anti-Money Laundering checks, Sanctions checks involve cross-referencing individuals, businesses, and organisations against official lists of entities subject to financial sanctions. These sanctions may be imposed due to criminal involvement, breaches of international law, or human rights violations.
The Office of Financial Sanctions Implementation (OFSI) maintains an updated list of sanctioned parties. Letting agents will be legally obligated to perform these checks before proceeding with a rental agreement. If a landlord or tenant appears on the sanctions list, the agent must report the finding to OFSI and may need to stop the rental process.
Consequences of Failing to Conduct Sanctions Checks
Failing to meet these obligations can result in serious penalties, such as:
- Fines and Legal Consequences: Not performing sanctions checks can lead to substantial fines or legal proceedings.
- Reputational Harm: Renting to sanctioned individuals or organisations could damage a landlord’s reputation and result in accountability for enabling unlawful activities.
How to Carry Out Sanctions Checks
Letting agents in Brighton and Hove and landlords can conduct these checks either manually or through automated services:
- Manual Checks: Accessing the public sanctions list and manually entering tenant information to search for matches. While feasible, and despite offering a personal service to our clients, this approach can be time-consuming and error-prone, especially with common names or incomplete data.
- Automated Checks: Using automated services offers a faster, more accurate solution, minimizing human error and ensuring full compliance.
How Bishop SureLets Can Support You, the Landlord
Working with our partners we are able to streamline the process by incorporating automated PEPs & Sanctions checks into identity validation and Right to Rent services. This includes verifying an applicant’s identity with government-issued ID and facial match verification before conducting sanctions screening.
Final Thoughts
As the only personal letting agent in Brighton and Hove we treat our client’s properties as our own. Although the upcoming changes in May 2025 may add an extra layer of responsibility, they contribute to a safer and legally compliant rental environment. Verifying tenants against sanctions lists helps protect you and your property so we see this as a good thing in the long run.
For more detailed guidance, visit the Government website, or reach out to our team to learn how to integrate these checks into your operations.
If you have any questions on this blog feel free to let me know.
If you need any assistance letting your property in Brighton, Hove, Kemptown, Worthing and surrounding areas or if you just have some general queries please feel free to contact us on +44 (0)1273 646426 or lettings@bishopsurelets.co.uk
Best Regards,
Julian Bishop