SStratum APIs

Which anti-money laundering guidance do UK letting agents follow?

Letting agents and estate agents supervised by HMRC follow HMRC's own guidance: the 'Anti-money laundering guidance for supervised businesses' manual on GOV.UK. It has a section for letting agent businesses (AMLG2300) and one for estate agent businesses (AMLG2200), plus a risk assessment for each sector. HMRC updated it for the Money Laundering and Terrorist Financing (Amendment) Regulations 2026, in force from 30 June 2026.

LSAG is often mentioned alongside it, but it is a different body. The Legal Sector Affinity Group writes the anti-money laundering guidance for the legal sector: solicitors, licensed conveyancers, barristers and notaries. Its current edition, approved by HM Treasury, took effect on 23 April 2025. A conveyancer acting on a sale follows LSAG; the estate agent on the same sale follows HMRC's guidance.

What HMRC expects of a letting agent within the money-laundering rules (lets of £10,000 a month or more; the threshold was 10,000 euros until 30 June 2026):

  1. Registration with HMRC for money laundering supervision.
  2. A written firm-wide risk assessment, with policies and controls to match.
  3. Customer due diligence on both the landlord and the tenant: identify and verify them, identify anyone owning over 25% of a company, and understand the purpose of the relationship.
  4. A check on whether a customer is a politically exposed person (PEP), and enhanced due diligence where the risk is higher (PEPs, high-risk countries).
  5. Ongoing monitoring, suspicious activity reports to the National Crime Agency, staff training, and records kept for 5 years after the relationship ends.

Sanctions apply to every let whatever the rent: since 14 May 2025 letting agents must report to OFSI any tenant or landlord they know or suspect is sanctioned.

The Stratum Letting Agent Suite API covers the screening part (UK, UN, EU and US sanctions lists on tenant and landlord, a corporate landlord's ownership, a signed PDF with the list versions); identity verification and the firm's own risk assessment stay with the agent.

Source: HMRC: Anti-money laundering guidance for supervised businesses

Last updated 2026-10-02.

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