Anti-money laundering (AML) updates 2025

The regulatory landscape for letting agents in the UK is shifting quickly. Here’s a breakdown of what’s changing, what might be coming next, and how you can stay ahead of the curve.

🔍 New Sanctions Monitoring Rules

Since 14 May 2025, all letting agents, no matter the rental value, must carry out ongoing monitoring of everyone involved in a tenancy. This means regularly checking whether any party becomes subject to UK financial sanctions and reporting any relevant changes.

Why does this matter? A recent case saw a letting agent fined £15,000 for a sanctions breach linked to a tenancy that began back in 2016. It’s a clear warning: even older agreements can come under scrutiny, and agents must have robust systems in place.

💶 AML Thresholds Under Review

Currently, letting agents must comply with anti-money laundering (AML) regulations when transactions exceed €10,000. But this threshold may soon change. There’s also growing discussion about introducing a cap on advance rental payments.

These potential updates could significantly impact how agents operate, so it’s crucial to keep an eye on regulatory announcements.

🏠 Real Estate Risk Ratings May Rise

The UK’s National Risk Assessment is overdue, and there’s speculation that estate agents could soon be reclassified as high risk for money laundering, up from their current medium risk status. With real estate already flagged as a high-risk sector, this change could bring tighter compliance expectations and more frequent checks.

🚨 More Inspections, More Penalties

Expect to see more financial penalties and the possibility of public naming of non-compliant agents. Now is the time to review your processes and ensure your compliance framework is watertight.

✅ Final Thoughts: Stay Ahead, Stay Compliant

With new rules in place and more changes on the horizon, letting and estate agents must take compliance seriously. Being proactive now can save you from costly penalties and reputational damage later.

The information in this post is valid to the best of our knowledge on the date of posting. It is advised that you seek independent advice based on your individual circumstances.

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