Anti-money laundering (AML) vs sanctions – what was the change?

There’s often confusion between anti-money laundering (AML) checks and sanctions compliance – but they are not the same.

AML regulations applied only to certain transactions, like tenancies with monthly rent over £10,000. Sanctions obligations, on the other hand, applied regardless of transaction size or business type. The new legislation meant that any letting agent, regardless of the rent amount, must not receive or send funds to a person or organisation on the UK sanctions list.

Why it mattered – and still matters

At Maxine Lester, we’ve always taken our responsibility seriously – not just to comply with legislation, but to protect our customers and our community.

The expanded regulations weren’t about red tape. They were about preventing funds, intentionally or not, from reaching individuals or entities involved in serious criminal or political misconduct.

To ensure we met these obligations, we took swift action:

• We trained our staff to identify risks and respond properly to official requests.
• We updated our systems to screen everyone involved in a tenancy – not just landlords, but also tenants and guarantors.
• And most importantly, we did all of this because protecting your interests is at the heart of what we do.

The cost of non-compliance

We didn’t need to look far to understand the risks. Late last year, Integral Concierge Services Limited, a small UK property firm, was fined £15,000 for managing a property owned by a sanctioned individual. They believed that only sending money was the issue – not receiving it.

OFSI disagreed – and the fine made that very clear.

Even charities were publicly named for failing to respond to information requests. No fines were issued, but the reputational damage spoke volumes.

What Maxine Lester did – and continues to do

We acted early to make sure our processes met the new standards—and we continue to uphold them. Here’s what that looks like in practice:

Client screening

We now screen all parties involved in a tenancy against the most up-to-date sanctions lists—regardless of rent amount.

Identity and ownership verification

We verify exactly who we’re dealing with, whether through the Land Registry or Companies House, and identify any Ultimate Beneficial Owners (UBOs) where needed.

Detailed record-keeping

We keep thorough records of every due diligence check, screening result, and client identity verification.

Ongoing training

Our team receives regular training, so everyone at Maxine Lester understands the regulations – and the importance of protecting our clients.

Prompt reporting

If we ever identify a potential breach or suspicious activity, we report it to OFSI immediately.

Why this is about more than compliance

For us at Maxine Lester, these changes weren’t just about legislation – they were about doing what’s right.

By understanding exactly who we’re working with, we not only protect ourselves, but also protect you – our landlords, tenants, and wider community.

So while the regulatory landscape may have shifted, one thing has remained constant: our commitment to your safety, trust, and peace of mind.

If you have any questions about how these checks affect you or want to learn more about how we stay compliant, just get in touch. We’re here to help.