- April 16, 2025
- Posted by: FCS Compliance
- Category: News, Property Market
On 10 April 2025, FCS Compliance hosted an essential webinar exploring the far-reaching implications of the new financial sanctions reporting obligations from the Office of Financial Sanctions Implementation (OFSI), coming into force on 14 May 2025.
Led by Malcolm Driscoll and Stephen Williamson, the webinar provided practical insights to help letting agents understand and prepare for the regulatory changes – which will bring all letting agents into scope, regardless of the rental value of the properties they manage.
The session was particularly timely, arriving just days after OFSI publicly fined a regulated business for breaching the UK’s financial sanctions regime. The enforcement action served as a sharp reminder that OFSI is ready to use its full statutory powers to hold businesses of all sizes accountable.
Key Takeaways from the Webinar
Here are some of the most important insights shared during the session:
1. All Letting Agents Now in Scope
From 14 May 2025, letting agents can no longer rely on the €10,000 monthly rent threshold. Any agent who knows or suspects a sanctions breach—whether by a landlord, tenant, guarantor or other connected party—must report it to OFSI.
2. Enforcement is Increasing
HMRC has made its expectations clear, issuing £1.6 million+ in AML fines last year alone. The most common failure? Not registering or renewing AML supervision on time—a criminal offence.
3. Don’t Overlook the Basics
Many firms are still falling short on foundational compliance requirements, including:
- Weak or outdated AML policies
- Missing or generic risk assessments
- Incomplete Customer Due Diligence (CDD)
- Insufficient staff training
4. Upcoming Companies House Reforms
The Economic Crime and Corporate Transparency Act 2023 will soon require enhanced accuracy and accountability from company directors. Agents should be aware of how these changes may impact their due diligence procedures.
5. Real-World Consequences
A letting agent was recently fined £15,000 for unknowingly processing payments for a sanctioned landlord—a stark warning that ignorance offers no protection under the law.
Need Help Preparing?
Whether you’re unsure about your current processes or want reassurance that your business is meeting the latest standards, FCS Compliance is here to help.
Our team of specialists provides practical, tailored solutions to help property professionals confidently navigate complex AML and sanctions obligations.
To find out how we can support your business, get in touch with us today.
