New Regulation Changes - 14/05/2025

Landlords, are you aware of the new regulations regarding financial sanctions checks that come into effect on 14 May 2025? From this date, all landlords, tenants and guarantors will be legally required to undergo sanctions checks. 

The changes aim to reduce financial crime and improve transparency, by identifying any individuals or entities who have been subject to government-posed restrictions.

Prior to the changes, sanctions checks were only required when monthly rents exceeded £8,300.00.

Going forward, letting agents will be required to conduct checks for all landlords, tenants and guarantors.

What is a Sanctions Check?

A sanctions check involves the screening of individuals and entities to identify whether they have government-imposed sanctions. For example, the sanctions could include:

To complete the checks, letting agents must check the UK sanctions list to see whether their clients are listed as having sanctions. If their client is on the list, they are legally required to report this to the Office of Financial Sanctions Implementation (OFSI).

Failure to comply with the changes under the Sanctions and Anti-Money Laundering Act 2018 could result in seven-figure fines and the possibility of criminal prosecution.

The Financial Sanctions Checks Process

To correctly complete the financial sanctions checks, the following process should be undertaken:

Guidance and Support for Landlords

The checks must be completed at the point when a landlord instructs an agent or when a landlord accepts a tenant’s offer. Letting agents can use automated sanctions checks to complete the required actions.

The new changes are yet another important regulatory update and it is becoming increasingly challenging for landlords and letting agents to prepare for the changes. With the Renter’s Rights Bill on the horizon, plus changes to EPC requirements, staying on top of the regulatory reforms can be overwhelming.

At Evans Estates, our team of experts are fully trained on all elements of compliance, and we can help landlords to navigate these latest changes. If you are looking for support with the new financial sanctions checks and/or the Renter’s Rights Bill, we’re here to help.

We will complete these financial sanctions on your behalf at a discounted rate from the 14th May 2025. 

Please get in touch if you are tenant find landlord and are worried about these new requirements and we can complete the financial sanctions checks on your behalf for a standard fee.