AML checks are getting stricter – why landlords are being asked for more information

The UK government has become sharp-eyed about suspicious activity, calling on estate and letting agents to follow strict guidelines. As a result, landlords might feel that onboarding processes are more detailed and intrusive than in previous years.

If you’re thinking of purchasing a buy-to-let property or already own one, read on for insights into why agents need to ask you for more documentation, what checks are required, and how these measures help protect both landlords and the wider property market from fraud and financial crimes.

Why the government is vigilant

When people launder money, they convert the proceeds of criminal activity into assets that appear to have a legitimate origin. In the property sector, someone might buy a house with illegally obtained funds and then resell it. Or they might set up a ‘ghost’ letting where a property remains empty while another person pays rent as a way to ‘clean’ money.

The UK government introduced the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 to tackle money laundering. For a few years, the rules applied only to properties with monthly rents exceeding €10,000. But recently the government has made two changes:

• As of May 2025, agents must run financial sanction checks on landlords and tenants regardless of rent value
• As of June 2026, the €10,000 cap has been redenominated to £10,000

In effect, more UK agents are now legally responsible for doing financial sanctions and AML checks. Estate agents must run checks on prospective landlords who want to purchase a buy-to-let property. Letting agents must run checks on the landlord and each tenant (and their guarantors) before they enter into a tenancy agreement.

If a landlord manages a property without an agent, they aren’t legally required to run checks on their tenants and guarantors, but it’s considered good practice.

What AML checks are required

The checks that agents must do depend on the rent value.

All agents must do ID verification and sanction checks, including:

• Verifying your identity and proof of address – you’ll need a valid photo ID like a passport or driving licence and recent proof of address (such as a utility bill that’s no more than 3 months’ old)
• Sanction screening – your name may be checked on the UK Sanctions List or OFSI consolidated list

Agents must do full AML checks if a monthly rental amount is £10,000 or above, or if there’s reason to suspect it’s needed – for example, someone pays a large amount of rent in advance. These checks also include:

• Verifying the source of your funds and wealth – you might need to show the specific origin of the money you’re using for the purchase and share documents such as payslips and bank statements

• Performing PEP (Politically Exposed Persons) checks – your details may go through a screening process designed to spot high-risk corruption or bribery vulnerabilities

If letting agents find anything suspicious, they are legally required to report this via a Suspicious Activity Report to the NCA. Here’s more government info on how letting agents assess the risk of money laundering.

How AML checks help your business

It may seem frustrating to spend time gathering documents for your agent, but the more efficiently you respond, the faster they can market your property and sign up tenants. More generally, your prompt compliance will help maintain a safe and reputable sector.

Have you got any questions about AML requirements or onboarding checks? Speak to your local Winkworth office for guidance on the compliance processes.