Financial crime and compliance rules are changing faster than ever. The technology used by Individuals involved in money laundering, fraud and terrorist financing has evolved over many years, and is now far beyond methods traditionally used to exploit loopholes in regulations. To keep up with these technological advancements the law is having to adapt.
From May 14th 2025, new ALM reporting obligations for letting agents will apply to all lets, regardless of rental value. The current reporting threshold is 10,000 euros (approx. £8,900 per month) where letting agents have a mandatory responsibility to report under the current AML rules. The volume of lets which currently boast a rent in excess of this figure is estimated at 2.5% of listed rental stock, from May this year the new rules will cover all rentals.
In 2024 total fines for estate and letting agencies amounted to £3m as a result of 468 AML breaches. There is an increased possibility that AML fines could climb in the short term, as letting agents navigate the significant increase in the resources required to stay AML compliant.
From May new rules for the verification of tenants and landlords will need to be followed to safeguard against any involvement in illegal activity.
For guidance, see Government link to the new regulations below:
https://www.gov.uk/government/publications/financial-sanctions-guidance-for-letting-agents/financial-sanctions-guidance-for-letting-agents#no-monetary-threshold
If you require any assistance with your property management or inventory requirements in the Oxford area including Abingdon, Didcot, Wallingford, Witney, Woodstock & Burford please call me Julie Godard on 07557008203 or visit our website https://www.abbeyindependentinventories.co.ukt