AML Checks in Lettings: What They Are, Why They Matter, and Why There’s a Cost
AML checks are now a legal must in lettings, not just sales. Whether you're a landlord or tenant, these checks verify identity, prevent fraud, and ensure compliance with 2025 regulations. Here’s why they matter, what they involve, and why there’s a small fee to cover them.
In 2025, Anti-Money Laundering (AML) regulations are no longer just something that sales agents and solicitors worry about—they’re now a key part of the lettings process too. Whether you're a landlord or a tenant, you’ve likely started to hear more about AML checks, and perhaps even been asked to complete them or pay a small fee. But what are they, really—and why are they necessary?
Let’s break it down.
What Is an AML Check?
AML checks are designed to prevent criminal activity—specifically money laundering, terrorist financing, and other illegal uses of the property market. For lettings, that means verifying the identity of landlords and tenants, confirming the legitimacy of funds being used (particularly for large deposits or rent in advance), and ensuring everyone involved is acting legally and transparently.
It’s no longer optional. It’s the law.
Why Are Letting Agents Carrying Out These Checks?
Letting agents—just like estate agents—are legally required to comply with the Money Laundering Regulations. This includes:
- Verifying ID and address of landlords and tenants
- Assessing risk based on the country of origin, occupation, and source of income or funds
- Monitoring ongoing transactions, especially if rent is paid in unusual ways or from third-party accounts
Failing to follow this process can result in serious consequences, including heavy fines or even criminal charges—not just for the agent, but potentially for the landlord too if they're self-managing and not compliant.
Why Is There a Cost Involved?
That’s a fair question—and one we hear often.
AML checks are not just a box-ticking exercise. They involve specialist software, document verification tools, trained staff, and secure data handling. At MP Estates, we take our legal responsibilities seriously, and we ensure the process is thorough, safe, and fully compliant. This takes time and resources, and the cost covers:
- Digital verification of identity documents
- Cross-referencing with government sanctions lists
- Secure storage of data to meet GDPR and HMRC requirements
- Staff training and professional compliance oversight
The small charge we apply reflects the importance and cost of doing this correctly not just for legal reasons, but to protect the integrity of the rental market in South Ockendon.
What If I’m a Landlord Managing My Own Properties?
If you’re letting a property without using an agent, you are still legally required to carry out AML checks yourself—and HMRC can and will investigate non-compliance. In fact, self-managing landlords are often more at risk of being unaware of the rules, which makes them a focus for regulatory checks.
We strongly recommend either using a regulated letting agent (like MP Estates) or ensuring you are registered, trained, and compliant under HMRC’s AML supervision scheme.
A Safer, More Transparent Market for Everyone
The property industry is changing—and while regulations can feel like a burden, they’re designed to protect the honest majority. By complying with AML rules, we help reduce fraud, money laundering, and illegal subletting—making the market fairer and safer for everyone.
