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New UK Regulation Background
As of 14 May 2025, new UK regulations now require all letting agents and relocation companies—regardless of size—to conduct financial “sanctions checks” before engaging with landlords or prospective tenants. The sanctions check is a screening process used to determine whether a person or organization appears on a government or international sanctions list.
These checks must be completed prior to signing a letting or relocation agreement. If a match is found on the UK Sanctions List—or if there is reasonable suspicion of a match—agents are legally obligated to report it to the Office of Financial Sanctions Implementation (OFSI) and halt further services.
Previously, only high-value rental agreements (those over €10,000/month) required such checks. The updated rules have removed this threshold to close all loopholes exploited by criminals using complex financial structures to evade detection.
The regulation places letting agents and relocation firms on the official list of “relevant firms” under UK financial sanctions law. This designation brings new legal responsibilities intended to combat:
- Money laundering
- Terrorist financing
- Human rights abuses
- Organized crime
- Political corruption
- National security threats
New UK Regulation Impact
For corporate HR and mobility teams, this rule is a significant compliance consideration when managing employee relocations. It also underscores the need for updated due diligence protocols across all vendor partnerships involved in housing and relocation.
NEI Global Relocation offers global clients proactive guidance to ensure the correct support is always provided. If you have questions on this topic or other mobility issues, please contact NEI’s Mollie Ivancic, SVP, International, your NEI Client Relations Manager or your NEI Client Development contact at 800.533.7353 any time.
Further details can also be found at NEI’s UK service partner Icon Relocation or at the OFSI page on Gov.uk.
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors before engaging in any transaction.
New UK Regulation Background
As of 14 May 2025, new UK regulations now require all letting agents and relocation companies—regardless of size—to conduct financial “sanctions checks” before engaging with landlords or prospective tenants. The sanctions check is a screening process used to determine whether a person or organization appears on a government or international sanctions list.
These checks must be completed prior to signing a letting or relocation agreement. If a match is found on the UK Sanctions List—or if there is reasonable suspicion of a match—agents are legally obligated to report it to the Office of Financial Sanctions Implementation (OFSI) and halt further services.
Previously, only high-value rental agreements (those over €10,000/month) required such checks. The updated rules have removed this threshold to close all loopholes exploited by criminals using complex financial structures to evade detection.
The regulation places letting agents and relocation firms on the official list of “relevant firms” under UK financial sanctions law. This designation brings new legal responsibilities intended to combat:
- Money laundering
- Terrorist financing
- Human rights abuses
- Organized crime
- Political corruption
- National security threats
New UK Regulation Impact
For corporate HR and mobility teams, this rule is a significant compliance consideration when managing employee relocations. It also underscores the need for updated due diligence protocols across all vendor partnerships involved in housing and relocation.
NEI Global Relocation offers global clients proactive guidance to ensure the correct support is always provided. If you have questions on this topic or other mobility issues, please contact NEI’s Mollie Ivancic, SVP, International, your NEI Client Relations Manager or your NEI Client Development contact at 800.533.7353 any time.
Further details can also be found at NEI’s UK service partner Icon Relocation or at the OFSI page on Gov.uk.
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors before engaging in any transaction.
