AML Checks Blog

From May 14, 2025, in line with new regulations, agents must carry out Anti Money Laundering (AML) checks on all prospective tenants, guarantors and landlords and report any PEPS or Sanctions they may find to the OFSI (office of Financial Sanctions Implementation), regardless of the level of monthly rent. 

This is a part of the UK government's efforts to strengthen compliance with financial sanctions and anti-money laundering (AML) laws. From this date onwards, Agents will need to verify the identity of tenants and landlords and check that they don’t appear on the UK’s financial sanctions list.

A suitable check should typically include,

Identity Check, 

PEP Search, (A check against a list of politically exposed persons), 

A check against the UK sanctions list which contains all designated person sunder sanctions regimes implemented in the UK. (UK Sanctions Search),

An SDN Check, A check against the Specially Designated Nationals and Blocked Persons list and all other sanctions lists administered by the Office of Foreign Assets Control (OFAC).

Should any potential PEPS or sanctions be found against their tenants, guarantors or landlords or have any evidence or suspicions that a client has breached financial sanctions then they must report this to the OFSI. 

Failing to do say may result in a heavy fine with penalties ranging between ranging from £1,500 to over £50,000.

In today's regulatory landscape, Anti-Money Laundering (AML) checks are crucial for agents to ensure compliance and mitigate risks. Other organisations governed by the same regulations may also need to conduct such checks and these include, Accountants and Tax Advisers, Estate Agents, Legal Professionals, Trust and Company Service Providers, Gaming and Casino Businesses, Luxury Goods and Art Dealers and Money Service Businesses. Anti-money laundering checks should be carried out at least once a year, but the frequency depends on the risk and the regulations in the industry. 

Understanding AML Checks

AML checks are identity verification processes used to establish whether an individual is involved in money laundering activities. These checks are a legal requirement for agents to undertake on customers as part of their anti-money laundering compliance efforts. 

AML checks often overlap with Know Your Customer (KYC) verification processes. This part of the verification process is known as Know Your Customer (KYC). 

LetHQ's AML checks provide a comprehensive and efficient solution for agents to ensure compliance and mitigate risks associated with money laundering. Powered by an industry, leading provider and leveraging the latest technology, LetHQ helps businesses streamline their operations and build trust with their customers and remain compliant. 

For more information on LetHQ's AML checks and how they can protect you and your business, visit: https://lethq.co.uk/service/aml-anti-money-laundering-checks/ 

LetHQ has been recognised for its excellence in tenant referencing, winning three consecutive awards at the ESTAS for the best tenant referencing company in the UK. Our commitment to quality and customer satisfaction is reflected in our 5-star reviews, highlighting our dedication to providing top-notch services to our clients.