Letting agents are being urged to act now as the 14 May sanctions compliance deadline approaches.
From mid-May, all letting agents will be required to check landlords, tenants, and, where relevant, beneficial owners of companies against the UK Sanctions List. Any matches must be reported immediately to the Office of Financial Sanctions Implementation (OFSI), with affected transactions frozen.
Coadjute, a property technology platform, is encouraging agents not to see the change as a box-ticking exercise but as a way to improve compliance processes and reduce risk.
John Reynolds, co-founder and chief operating officer at Coadjute, says, "This is a significant regulatory shift for the lettings sector, and while it brings extra responsibilities, it doesn't have to be overwhelming. With the right systems and processes in place, agents can manage these changes efficiently and minimise disruption to day-to-day business."
What agents need to do from 14 May:
Screen all landlords and tenants involved in rental agreements
Identify and check Ultimate Beneficial Owners (UBOs) if either party is a company
Stay updated with the UK Consolidated Sanctions List
Report any matches to OFSI and freeze relevant transactions
Monitor tenancies on an ongoing basis in case of status changes
Coadjute is advising letting agents to focus on four key areas to ensure they remain compliant:
1. Review screening processes
Make sure your agency has access to real-time tools and a robust due diligence framework.
2. Improve documentation
Keep clear, timestamped records of all checks, decisions, and any OFSI reports.
3. Train your team
Ensure everyone understands how to identify a match and what action to take.
4. Continue monitoring after onboarding
Sanctions checks aren’t a one-off. Agents must monitor throughout the tenancy.
Why it matters for landlords
Although the new responsibility lies with agents, landlords will likely be affected if delays occur due to missed checks or frozen transactions. Those using managing agents should ensure they are equipped to handle the changes — not just to protect deals, but to avoid reputational risk.
Reynolds adds, "We’re seeing more agents turning to digital solutions to handle checks quickly and accurately — not just to stay compliant but to reduce the manual admin involved. Platforms like Coadjute can deliver real-time alerts, support faster decision-making and even create a new revenue stream for agents. It’s about working smarter, not harder."
