Sanctions at the Door: The New Checks Every Landlord Needs to Carry Out

1. The One-Minute Headline

Until 13th May 2025 sanctions checks were only required if the rent topped £8,300 per calendar month.

From 14th May 2025 landlords must screen every single tenant (and any rent-paying guarantor) against the UK Sanctions List.

Miss a check and the penalty can be whichever is bigger: £1 million or 50% of the transaction value - plus the small matter of up to seven years in prison.

2. Why the Sudden Clamp-Down?

Because criminals have twigged that rental property is a handy laundrette for their ill-gotten gains.

The Treasury, never famed for its sense of humour, has now shoved landlords and letting agents onto the list of “relevant firms” that must report anything fishy to the Office of Financial Sanctions Implementation (OFSI).

3. Your “Keep-Me-Out-of-Court” Checklist

1. Collect rock-solid ID

• Passport or driving licence plus a proof of address dated within the last three months.

• Give documents the once-over for dodgy fonts and blurry edges, then run them through an online verifier if you have one.

2. Run the sanctions search

• Pop the name of every tenant and guarantor into the UK Sanctions List search tool.

• Screenshot the result, date-stamp it, file it with your other paperwork.

3. Watch for red flags

• “I’ll pay twelve months in cash - no receipt needed.”

• Reluctance to show ID (“My passport’s with the consulate… honest”).

• Insistence on zero inspections.

4. Report, don’t tip-off

• A positive (or even “could be”) match goes straight to OFSI.

• Warning the applicant is itself a criminal offence - maximum seven years’ free accommodation (with HM Prison Service).

5. Keep the paperwork

• Store checks for at least five years.

6. Re-check yearly

• Because tenants might get sanctioned mid-tenancy.

4. The Eye-Watering Numbers

Civil fines: up to £1 million or 50% of the amount involved, whichever is larger.

Criminal penalties: fines plus up to 7 years’ imprisonment for the most serious breaches.

Real-world example: HMRC levied fines totalling £1.6 million in 2024 for AML slip-ups. Ouch.

Imagine those numbers against your pension pot and you’ll see why paying a professional to do it for you suddenly feels like a bargain.

5. FAQs from Landlords

Q: “I let one flat a year - surely this is for big agents?”

A: Doesn’t matter. If a sanctioned individual ends up in your property, you can still be fined for “should-have-known-better.”

Q: “I’m overseas - do UK rules follow me?”

Yes. UK sanctions laws stick like super-glue. Geographic excuses won’t wash.

Q: “Can’t I plead ignorance?”

Only if you're looking for free accommodation and three square meals a day (for up to seven years).

6. Your 3-Step Action Plan

1) Make a cup of tea.

2) Download our free AML mini-checklist.

3) Run prospective (and all current) tenants through the sanctions search.

OR put the checks on autopilot, and let us do it for you.

7. Ready to Sleep at Night?

Book your landlord consultation today.

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