Letting agents are being advised to adopt proactive measures and leverage automated screening tools ahead of new rules on sanctions reporting according to client due diligence platform Thirdfort.

From 14 May 2025, letting agents must conduct sanctions checks on clients, following the UK Government’s extension of sanctions reporting obligations, which means that’s 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.

Harriet Holmes, Senior Manager of AML Solutions at Thirdfort, said: “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.”

Letting agents must understand the regulations and adapt their working practices and systems accordingly, ahead of the new framework's introduction, industry body Property Mark has warned. Failure to comply may result in substantial fines or even criminal prosecution.