Date Published 02 May 2025
Starting May 14, 2025, letting agents must follow new Anti-Money Laundering (AML) and Financial Sanctions Regulations (FSR). These rules are meant to improve oversight and reduce financial crime. Garrett Foxon, CEO of automated client accounting platform Lettspay, explains the key points:
New Reporting Duties
Letting agents will need to:
• Report to the Office of Financial Sanctions Implementation (OFSI) if they know or suspect someone is under financial sanctions.
• Report any money or resources they manage for such individuals or companies.
• Send reports as soon as possible.
Who Is Affected?
These new rules apply to all letting agents, regardless of the rent amount. Previously, only high-end lets (over €10,000/month) were covered. Now, every rental is included.
Many agents who didn't need to check clients before (under the old rules) will now have to start doing customer due diligence (CDD).
What Are Financial Sanctions?
Financial sanctions are rules that:
• Freeze assets of people involved in crimes like terrorism or money laundering.
• Restrict financial services and investments to those people.
What Happens If You Don't Comply?
Not following the rules can lead to significant penalties, including unlimited fines and legal action.
Help Is Available
The OFSI will provide guidance and support, including industry meetings before the rules take effect, to help agents understand and follow the new requirements.
As your dedicated Agent, we would like for you to understand that these changes will potentially lead to significant increases to our work load however this is to ensure our clients and their properties remain compliant in line with the new legislation.
