Letting agents must ensure that they are fully prepared for the new regulatory requirements introduced today.
Letting agents are now required to screen all landlords, tenants, and — where applicable — beneficial owners of corporate landlords or tenants against the UK Sanctions List. Any positive matches must be reported immediately to the Office of Financial Sanctions Implementation (OFSI).
While some agents will inevitably see the new rules as a burden, others view it as an opportunity to streamline their operations and enhance compliance processes.
Goodlord’s head of referencing, Nishma Parekh, commented: “New rules around sanctions checks represent a major shift for the industry and it would be very easy for letting agents to unwittingly fall foul of them. Every single landlord and tenant, no matter the rental value, must now go through sanctions checks.
“With four in five landlords feeling unprepared for the changes, it’s vital that they get their ducks in a row immediately if they want to stay on the right side of the law. If they fail to comply – even if it’s a genuine mistake – they could be facing unfathomable fines of up to £1m.”
Coadjute advises that agents consider four key areas to stay compliant:
1. Review screening processes: Ensure your agency has access to up-to-date screening tools and is following a consistent due diligence workflow.
2. Improve documentation and audit trails: Maintain clear, timestamped records of checks conducted, decisions made, and any reports filed.
3. Train your team: Ensure all staff understand what sanctions are, how to perform checks, what constitutes a match, and how to report.
4. Stay compliant beyond onboarding: Sanctions checks must be performed not just at the start of a tenancy but monitored throughout the tenancy term.
