Financial Sanctions Guidance for Letting Agents – From 14 May 2025
Financial Sanctions Guidance for Letting Agents – From 14 May 2025
From 14 May 2025, new financial sanctions reporting obligations will apply to letting agents across the UK – including those operating in the private residential sector. As a responsible and professional letting agency, Western Lettings is committed to full compliance and transparency, and we want to ensure our landlords and tenants understand what this means in practice.
What are financial sanctions?
Financial sanctions are restrictions imposed by the UK Government to support national security and foreign policy objectives. They can include measures such as:
- Freezing the assets of individuals or organisations
- Preventing access to financial services
- Blocking funds or economic resources from being used by designated persons
These sanctions are not optional, they are legally binding, and failure to comply can result in severe consequences.
What does this mean for letting agents?
Under the updated rules, letting agents are now legally required to report to the Office of Financial Sanctions Implementation (OFSI) if they have knowledge or reasonable cause to suspect that someone involved in a letting transaction is a designated individual or connected to a sanctions breach.
There is no financial threshold for this obligation, even low-value tenancies or transactions could fall under scrutiny.
Letting agents must:
- Not knowingly facilitate property rentals to designated individuals
- Refuse instructions that could result in a breach of sanctions
- Report suspicions promptly to OFSI
Do letting agents have to screen all tenants and landlords?
No, there is no legal requirement to screen every single tenant or landlord against the sanctions list. However, we are expected to remain vigilant, particularly when something raises a red flag.
At Western Lettings, we already take due diligence very seriously. This new requirement formalises our approach to risk and reinforces our commitment to safe and legal practice.
How Western Lettings is responding
In line with the updated government guidance, we are:
- Reviewing our internal policies to ensure compliance
- We have built an automation which checks new landlords and tenants against the published lists of sanctioned individuals.
- Training our team to identify and report risks effectively
- Staying up to date with OFSI’s consolidated list of designated persons
We will continue to provide a safe and professional letting experience for all our clients, while ensuring we meet our legal obligations.
Our final thoughts
Financial sanctions are an essential tool in safeguarding the UK’s economic system. As letting agents in Glasgow, we now play a direct role in supporting their enforcement.
If you are a landlord or tenant and have any questions about these changes, please get in touch with our team. We are always happy to offer advice and reassurance.
