Client due diligence platform Thirdfort is advising letting agents to adopt proactive measures and leverage automated screening tools ahead of new rules on sanctions reporting.
From 14 May 2025, letting agents must conduct sanctions checks on clients, following the UK Government’s extension of sanctions reporting obligations.
Letting agencies will now be classified as ‘Relevant Firms’, meaning they must notify the Office for Sanctions Implementation (OFSI) if they know or suspect a breach of sanctions has occurred, if a person is a designated person, if it holds frozen assets, and if that knowledge or suspicion arose during the business.
Ahead of the new framework’s introduction, industry body Property Mark has warned that letting agents must understand the regulations and adapt their working practices and systems accordingly. Failure to comply may result in substantial fines or even criminal prosecution.
To prepare, Thirdfort advises letting agents review OFSI guidance, refine onboarding and monitoring processes, establish clear internal reporting procedures, and provide staff with comprehensive training on sanctions compliance. Implementing strong screening processes for tenants and landlords, staying up to date with sanctions lists, and keeping detailed records will help ensure compliance.
Red flags to consider include clients exhibiting aggressive behaviour, unexplained name changes, the involvement of third parties, or individuals whose details match those on the OFSI consolidated list.
Harriet Holmes, senior manager of AML Solutions at Thirdfort, commented: “The sanctions regime operates under strict liability, meaning that a person or business will be held liable even if they had no knowledge or reasonable cause to suspect that they were in breach of sanctions. However, adopting proactive measures and leveraging automated screening tools can help simplify compliance. By enhancing their due diligence, agents can protect their businesses and help to support the UK’s efforts to maintain national security and financial integrity.”
Screening tools can streamline the process of identifying designated individuals by automatically cross-referencing clients against up-to-date sanctions lists. Additionally, these tools often provide real-time alerts and comprehensive reporting features, reducing the risk of human error and enabling agents to quickly flag potential issues to the Office of Financial Sanctions Implementation (OFSI).
Read the orginal article: https://propertyindustryeye.com/agents-urged-to-prepare-for-new-sanctions-rules/
