Preparing for the new AML rules for lettings

From 14 May 2025, letting agents across the UK will need to screen both landlords and tenants against the UK sanctions list before granting a tenancy. These changes form part of updated Anti-Money Laundering (AML) and Financial Sanctions regulations designed to improve transparency and reduce financial crime in the rental market.

While the updates bring new responsibilities, Kotini is here to help make things easier.

What are the new AML rules for lettings?

Letting agents will be expected to carry out more detailed checks as part of landlord and tenancy onboarding. These include screening them for sanctions or political exposure, keeping records of those checks and taking timely action if needed.

• Apply to all letting agency work, removing the previous £120,000 annual rent threshold that limited obligations to high-value properties.
• Broaden current anti-money laundering (AML) and financial sanctions reporting requirements to cover tenants and landlords.
• Require letting agents to adopt proactive measures to detect and report financial crime within the sector.

The key obligations are:

• Reporting to the Office of Financial Sanctions Implementation (OFSI): Letting agents must report any knowledge or suspicion that a person or entity is subject to financial sanctions.
• Timely Reporting: Reports must be submitted “as soon as possible” after a potential breach is identified.
• Record Keeping: Detailed records of all compliance activities must be maintained for at least five years.
• Risk Assessment: Agents must conduct thorough risk assessments to identify transactions, individuals, or entities that present a higher risk.
• Identity Verification: Agents must verify the identities of all individuals and entities named in tenancy agreements, using official documentation or approved digital verification tools.
• Financial Sanctions Screening: Financial sanctions checks must be carried out on all prospective tenants named in the tenancy agreement.

The new obligations apply to all rental properties, removing previous value thresholds and placing greater responsibility on letting agents to detect and prevent money laundering in the sector.

Simple, automated checks – Built into the Kotini flow

Rather than adding pressure to already busy teams, Kotini helps you stay compliant without the extra workload.

✔️ Fast Results
Fast, reliable checks that’ll prevent delays in your listing process and give you confidence.

✔️ Comprehensive Reports
Biometric ID checks, PEPs, sanctions and adverse media results included as standard.

✔️ Simplify your business
Manage your onboarding process for landlords, tenants, buyers and sellers all in one place.

Compliance that works in the background

These changes are significant, but manageable with the right tools. Kotini’s automated checks help you stay on track with minimal disruption, supporting smooth, secure lettings for everyone involved.