From 14 May 2025, new UK rules made AML (anti-money laundering) checks mandatory for letting agents — not just for high-value properties, but for all tenancies regardless of the level of monthly rent. These changes mark a significant shift in the lettings industry, and failing to comply can carry serious consequences as part of a global crackdown on AML compliance.
Financial sanctions guidance for letting agents (GOV.UK)
In this post, we will explore the latest regulatory changes, the risks involved letting without AML compliance, and how LetHQ’s instant True AML checks service help agents and landlords stay secure.
Previously, anti-money laundering obligations for letting agents were limited, applying to tenancies with a certain monthly rent fresh hold. The threshold for mandatory checks has now been removed, meaning that every prospective tenant, guarantor, and landlord must be screened. This includes verifying identity, checking for politically exposed persons (PEPs), reviewing the UK sanctions list, and screening against the SDN/OFAC lists.
If a match is found, agents must report this themselves to the Office of Financial Sanctions Implementation (OFSI). The expansion of AML obligations reflects the government’s efforts to close loopholes and prevent the property market from being used to launder money or hide illicit funds.
Failing to comply with these rules can lead to serious consequences, including fines from £1,500 to over £50,000, regulatory sanctions, and reputational damage. In extreme cases, knowingly ignoring AML obligations could also result in legal action.
AML checks are not just a regulatory formality — they protect your business and clients. Screening tenants and landlords mitigates the risk of onboarding individuals involved in financial crime, giving your agency confidence that all parties are legitimate. Demonstrating robust compliance also strengthens your reputation and builds trust with landlords, tenants, and investors.
Additionally, integrating AML checks into your onboarding process is now essential along with vetting applicants, automated checks produce instant results, freeing up staff to focus on other areas of property management.
While compliance is the legal driver, the operational and reputational benefits make AML checks a smart business practice.
LetHQ offers a simple and effective solution for staying compliant with the new AML regulations. With LetHQ, you can run a full true AML check quickly and easily online with minimal data input in a frictionless way without the need to involve the tenants themselves. Checks include identity verification, PEP and sanctions screening, and SDN/OFAC list checks. Results are delivered instantly in a secure PDF report, ensuring you have a clear record of compliance.
The platform also supports bulk uploads, allowing you to bring your existing tenant and landlord records up to date. With ISO 27001 certification, LetHQ ensures your data is handled securely and according to best practice. No need to top up or by credits, you only pay for the checks you submit, without the need for any set up charges or monthly or annual subscription misery.
By integrating LetHQ’s AML checks into your workflow, you reduce risk, simplify compliance, and demonstrate professionalism to your clients.
Letting agents and landlords should adopt a structured approach to AML compliance. First, checks should be completed as soon as a tenancy offer is accepted or when a landlord engages your services. Early verification ensures that no parties involved in financial crime slip through the process. Updating your AML and compliance policies ensures that procedures remain clear and aligned with the latest regulations.
By embedding AML checks into everyday operations, agencies and landlords can reduce legal risk, protect their reputation, and operate with confidence in a changing regulatory landscape.
Unlike some other providers, in line with FCA guidance this is not just a random name search against various sanctions and PEP lists. This is a true AML check that first looks to verify the individuals is who they say they are by confirming their identity prior to conducting the mandatory checks.
The 2025 AML regulations represent a pivotal moment in the UK rental market. Compliance is no longer optional, and the consequences of failing to act are serious. LetHQ’s true AML check service makes compliance simple, cost-effective, and secure, allowing agents and landlords to focus on growing their business while reducing risk.
Now is the time to integrate AML checks into your workflow. By doing so, you safeguard your agency, protect your clients, and stay ahead of regulatory obligations. LetHQ ensures that staying compliant is easy, fast, and reliable.
For more information on how we can support you and your business visit LetHQ or call 0343 612 2233 today.
