According to Goodlord, just 110 out of 558 industry stakeholders surveyed by the firm feel prepared for the mandatory sanctions regime beginning next Wednesday, May 14.

Some 26% say they are definitely not prepared while 54% say they are unsure.

Nishma Parekh, Goodlord’s director of referencing, says: “These results are confirmation, if it were needed, of the widespread uncertainty that we’re seeing across the PRS at the moment.

“Faced with a seemingly never-ending barrage of new regulation, it’s little wonder that so many landlords and agents feel concerned about their ability to comply.

“With just weeks to go until mandatory sanctions checks come into force, it’s clear from these figures that there is still a worrying amount of confusion and unanswered questions across the industry.

“But while the regulatory confusion is frustrating, it’s important that those working in the sector understand that they don’t have to deal with this on their own.”

From May 14 all lettings agents will be required to comply with financial sanctions regulations. 

Previously, agents dealing with rental agreements under €10,000 didn’t need to register with HMRC for AML supervision. 

So the new regime is tougher, meaning all lettings agents have a legal obligation to:

• Identify Designated Persons (DPs): These are individuals or entities subject to financial sanctions.

• Report Breaches: If you know or have reasonable suspicion that a person (be it a landlord, tenant, or another party in the transaction) is a DP, or that a financial sanctions breach has occurred, you must report it directly to the Office of Financial Sanctions Implementation (OFSI). This includes stating the nature and value of any funds or economic resources held for that customer.

This is a new responsibility for many, especially those who haven’t previously been subject to AML supervisory requirements. It effectively means that even if your tenancies are below the AML registration threshold, you cannot ignore potential sanctions concerns.

Failure to comply could lead to fines of up to £1m and potential criminal prosecution with up to seven years in prison.

You can see more details of the regime and what it means for agents on a special feature here: https://www.estateagenttoday.co.uk/features/2025/05/navigating-the-new-maze-what-upcoming-aml-sanctions-changes-mean-for-uk-letting-agents/