The new rules mean that financial sanctions reporting obligations for the rental sector apply to all rental agencies, regardless of the value of the rental agreement.
Financial sanctions include restrictions on specific individuals, including the freezing of financial assets, and broad restrictions on investments and financial services. Financial sanctions apply to everyone in the UK, regardless of nationality, but also to British nationals anywhere in the world. 
These new financial sanctions regulations will come into force on May 14, 2025, after which rental agencies will be added to the list of “associated entities” under the financial sanctions regulations, which are separate from the existing anti-financial regulations. New reporting obligations will be imposed. Money laundering rules. These are limited to tenants characterized by rents of more than 10,000 euros per month.
The new Financial Sanctions Regulations require that if a letting agent knows or suspects that a person is a Designated Person, or is not complying with the Sanctions Regulations, the letting agent must notify the Financial Sanctions Enforcement Authority as soon as practicable. This means that the person must be notified.
This includes the amount or quantity of funds or economic resources held or managed by an agent on behalf of its customers.
This is a missed opportunity to level the playing field for dispatching agents. ”
OFSI has published new guidance on providing further information on reporting obligations to agencies, and further industry engagement is expected in the new year.
Commenting on the changes, Propertymark CEO Nathan Emmerson (main image) said: “Propertymark has long been a company where cash payments have been used to 'clean up' dirty things. We have advocated for the removal of existing standards for AML supervision of intermediaries to reduce the risk of money.
“We are aware that the UK Government wants to tackle financial sanctions breaches that are occurring below thresholds, but this is an area where it gives permission to agencies in terms of AML supervision (AML Rules and Financial Sanctions). “Customer due diligence and financial sanctions reporting requirements would be a missed opportunity to level the playing field (between rules).”
false alarm
“Treasury must continue to engage broadly with this sector to avoid misinformation and confusion among agencies and financial institutions.
“Furthermore, we continue to urge the Treasury to consider the implications of this proposal and ensure that anti-money laundering regulatory standards are removed to increase transparency in this area and reduce vulnerability to criminal activity. I will go.”
