Government announcement: PEP and Sanction Checks
From 14th May 2025, the Government has decided that letting agents, in accordance with HM Treasury’s Anti-Money Laundering (AML) legislation and as per the Office of Financial Sanctions Implementation (OFSI), will be legally obligated to carry out PEP (Politically Exposed Persons) as well as Sanctions checks on all parties involved in the tenancy. This is part of the UK Government’s wider effort to prevent money laundering, terrorist financing, and ensure compliance with financial sanctions.
Who needs to be checked?
All landlords, tenants and guarantors must have checks completed. In the case of landlords, this applies to all owners of the property. If the landlord is a company, the named directors will be checked. To aid this process, checks will be completed at the start of each new tenancy or where there is a change during the tenancy such as a change of tenant or landlord ownership.
What is a PEP?
A PEP (Politically Exposed Person) is someone who holds (or has held) a prominent public position or is a close associate or family member of such a person.
What are Sanctions?
Sanctions are measures imposed by the Government sets to restrict the activities of individuals, entities or countries to prevent financial crime and protect national security. This check verifies if the individual is listed on any UK or international sanctions lists. Sanctions can include but are not limited to:
- Freezing financial assets
- Banning real estate transactions
- Imposing restrictions on financial services and investments
- Introducing travel bans
- Removing or denying visas
What do I have to do?
Nothing, this is something we will complete automatically as part of our processes. However, in the unlikely event an issue is identified we must notify the OFSI and they will advise on any further action needed in order to proceed with letting the property. Please see our Privacy Policy for details on how we deal with your data.
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