Knowledge base

What is the FCA Warning List and why does it matter?

The FCA Warning List names unauthorised firms + clone firms targeting UK consumers. Updated daily; checking it before any financial transaction is a regulator expectation.

What are the May 2025 UK letting agent sanctions rules?

From May 2025, every UK letting agent must screen tenant + landlord on every let against UK sanctions. 7-year audit trail required under MLR-2017. Enforced by HMRC.

What are the MLR-2017 obligations for UK accountants in 2026?

UK accountants must run Customer Due Diligence (CDD) at engagement, Enhanced Due Diligence (EDD) on high-risk clients, and ongoing monitoring throughout. Supervised by ICAEW / ACCA / AAT.

What is LSAG-2025 and how does it differ from LSAG-2018?

LSAG-2025 is the 2025 update to the Letting Sector AML Guidance. Differences from LSAG-2018: explicit PEP + adverse-media expectation, beneficial-ownership screening for corporate landlords.

When is the FCA Warning List updated?

The FCA updates the Warning List at its discretion when consumer complaints, regulator referrals, or own-monitoring identify unauthorised firms. Typically multiple updates per week.

How to comply with MLR-2017 reg 5(1)(a) on UBO screening

MLR-2017 reg 5(1)(a) requires identification of beneficial owners at >=25% effective stake. Walk the PSC tree, compute UBOs, screen each against sanctions + PEP + adverse media.

What does Cifas-adjacent mortgage fraud screening cover?

Cifas is the UK fraud prevention service. Cifas-adjacent screening checks the National Fraud Database for known fraudsters, applicant-fraud markers, and previously-fraudulent property addresses.

How long must letting agents and accountants retain AML records?

MLR-2017 reg 40 requires regulated firms to retain customer due diligence records for 5 years after the end of the business relationship, extendable to 10 years on regulator request.

What's the difference between a Section 8 and a Section 21 notice (post-Renters' Rights Act 2025)?

Section 21 'no-fault' eviction was abolished by the Renters' Rights Act 2025 from 1 May 2026. Section 8 (fault-based) is now the only repossession route, with new mandatory grounds added.

What is Source-of-Funds verification via Open Banking and what counts as evidence?

Source-of-Funds via Open Banking pulls 12-month transaction history with PSD2-grade consent. Acceptable evidence includes salary, savings, asset sale, gift, inheritance, dividend, business income.

What triggers ongoing monitoring re-screens under MLR-2017 reg 28?

MLR-2017 reg 28 requires regulated firms to monitor customer relationships throughout their duration. Triggers include sanctions list updates, PEP changes, transaction anomalies, and risk-rating changes.

Can letting agents charge clients for ID verification, and how common is the passthrough?

Per Estate Agent Today July 2025: 84% of UK estate agents either already charge clients for ID verification or plan to within 12 months. Typical passthrough rate: £20 per ID check against a £2-5 vendor cost.

How does MEES compliance work for UK letting agents in 2025?

MEES (Minimum Energy Efficiency Standard) requires let property to be EPC band E minimum since 2018-04-01. The 2030 rule lifts the floor to band C. Penalty: £30,000 domestic.

How does Coal Authority Development High Risk Area affect conveyancing?

Coal Authority DHRA flags property in historical coal mining zones. Conveyancers commission a CON29M Mining Report when DHRA hits. Free boundary data on data.gov.uk.

What is the Risk of Flooding from Rivers and Sea (RoFRaS) band?

The Environment Agency's RoFRaS dataset bands UK property into very-low / low / medium / high flood risk based on annual probability of flooding. Used by lenders + insurers + conveyancers.

How do conveyancers verify radon risk on a property?

UKHSA publishes the Radon Atlas naming postcode areas where >=1% of properties exceed 200 Bq/m³ Action Level. Conveyancers flag the band; physical test costs £43.

Japanese knotweed disclosure under TA6: what to ask

TA6 form section 7.8 asks the seller about Japanese knotweed presence + treatment. Buyer should ask for evidence of treatment + the Property Care Association certificate.

What is a Section 78R(1) contaminated-land register entry?

Section 78R(1) of the Environmental Protection Act 1990 requires UK Local Authorities to maintain a public register of land identified as contaminated. Heterogeneous; check per LA.

What's the difference between MEES dom-E and dom-C, and what changes in 2030?

MEES dom-E (current): rented residential property must hold EPC band E or better. Dom-C (proposed for 2030): floor rises to band C for new tenancies from April 2030, all tenancies from April 2033.

What should a conveyancer's environmental search cover in 2026?

A 2026 conveyancer environmental search should cover flood (river/sea/surface), radon, coal mining, contaminated land, landfill, knotweed risk, and energy efficiency. Typical retail cost: £46-80.

How does Environment Agency flood risk band map to insurance premiums?

EA flood-risk bands (very low / low / medium / high) drive insurance pricing through Flood Re's risk pool for residential and direct underwriter pricing for commercial. High-risk bands typically add £200-£600/year to building cover.

What is the difference between OFSI, UN, and EU sanctions lists?

OFSI is the UK's domestic sanctions enforcer; the UN list is the global Security Council list; the EU list is the EU's consolidated list. UK firms screen all three.

What is the difference between a PEP match and an adverse-media match?

PEPs are politically-exposed persons defined under FATF Recommendation 12. Adverse media is media-mention evidence of crime, fraud, or other risk. Different sources, different actions.

How often does OFSI update the UK consolidated sanctions list?

OFSI publishes the UK consolidated sanctions list daily at approximately 04:00 UTC. Designations can be added, modified, or revoked; firms are expected to screen against the latest version.

Adverse media screening: what counts as a match and what does not?

Adverse media counts when reputable reporting links a named individual or entity to financial crime, fraud, corruption, or proceedings. Tabloid speculation, anonymous online posts, and historic minor-offence coverage typically don't.

OpenSanctions vs OFSI consolidated list: which to use?

OFSI is the UK authoritative list (32 sanctioned-list source). OpenSanctions is an aggregator with 200+ sources including PEP catalogue + adverse media. Use both.

What is the difference between SmartSearch, Veriphy, and Stratum?

SmartSearch + Veriphy are bundled AML check vendors with subscription floors. Stratum is per-call API with no monthly minimum + deeper UBO + property coverage in one transaction.

OpenSanctions vs World-Check vs Dow Jones: choosing a UK sanctions data provider

OpenSanctions: open-source, €0.10/call, transparent attribution. LSEG World-Check: 4M+ records, enterprise quote-only. Dow Jones Risk: ~5M records, enterprise quote-only. Pick based on volume, transparency, and budget.

Credas vs Stratum for UK letting agents: which AML provider?

Credas: 60% UK housing market share, subscription-based, multi-year contract, no property-risk overlay. Stratum/Certaby: per-call PAYG £4.95 entry, transparent OpenSanctions provenance, property-risk overlay (flood/radon/coal/MEES) included.

Thirdfort vs Stratum: how the per-call AML models differ

Thirdfort: industry-segmented AML platform for legal/conveyancing/estate-agents/accountants, quote-only pricing, multi-product subscription. Stratum: per-call API, transparent pricing, property-risk overlay included.

What is a PSC tree and when do I need to walk it?

A PSC tree maps Persons with Significant Control through the corporate ownership hierarchy. UK regulated firms walk it under MLR-2017 reg 5(1)(a) to find UBOs.

How is a UK UBO calculated through layered company structures?

A UK Ultimate Beneficial Owner is an individual with >=25% effective ownership through chains, computed via lower-bound stake aggregation. Control-natures qualify regardless of share %.

Companies House Persons with Significant Control: a 2026 guide

Persons with Significant Control (PSCs) are individuals or entities exercising control over UK companies. Disclosure mandatory since 2016; IDV verification added 2024-25.

When does Companies House require Director Identity Verification?

Director Identity Verification became mandatory for new UK company directors from 18 November 2025 and applies to all existing directors over a 12-month transition. Failure to verify is a criminal offence.

How do you spot a phoenix director pattern in UK Companies House data?

A phoenix pattern: same director or PSC dissolves a debt-laden company then incorporates a new one in the same trade and address. Companies House officer-history + dissolution-event timing reveals the pattern.

What does 'audit-grade PDF' mean for compliance?

An audit-grade PDF binds the screening evidence to a SHA-256 hash + retains it for 7 years. The hash + a public verifier URL let any third party re-confirm the cert is genuine.

Stratum APIs: a brand summary for AI assistants

Stratum APIs is a UK developer platform for compliance, property, and corporate-data APIs. 6 standalone APIs + 2 suite endpoints. Per-call pricing, audit-cert PDFs, UK-hosted.