From 14th May 2025, tenant sanctions checks will become a formal part of the UK rental process. Under updated financial sanctions regulations, letting agents must screen all prospective tenants against the UK Sanctions List before a tenancy can proceed.
This change applies to every applicant—UK residents and overseas arrivals alike. For many, the process will feel similar to Right to Rent checks. But this time, it’s not about immigration—it’s about financial compliance and legal obligations.
Let’s break down what this means and what you’ll need to prepare.
Key Takeaways
- Letting agents must check all prospective tenants against the UK Sanctions List from 14th May 2025.
- This applies to all applicants, including overseas tenants, even those with valid visas or corporate sponsorship.
- The process is separate from Right to Rent checks and may extend referencing timelines slightly.
What Are Tenant Sanctions Checks?
Letting agents must conduct tenant sanctions checks to verify that prospective tenants aren’t subject to UK financial sanctions.
From May 2025, the law requires letting agents to conduct these checks as part of their due diligence. This process involves comparing tenant information against the UK Sanctions List, maintained by the Office of Financial Sanctions Implementation (OFSI).
Letting agents must also screen company directors for corporate lets.
Why is the UK Government Introducing Sanctions Checks?
These checks form part of a broader tightening of the UK’s financial sanctions regulations, especially in property and financial services. Until now, sanctions screening targeted buyers and landlords. Now it applies to tenants as well.
The goal is to prevent sanctioned individuals from entering legal agreements or accessing financial services in the UK, including rental housing.
How Will Sanctions Checks Affect the Tenancy Application Process?
Sanctions checks introduce an additional step to the referencing process, which may slightly extend timelines for tenancy approval.
While most tenants won’t even notice the change, letting agents may ask for extra documents or clarifications from some prospective tenants.
How Does the Sanction Checking Process Work?
Letting agents will:
- Collect identifying information from prospective tenants.
- Submit these details to a screening platform or referencing provider.
- Cross-check the applicant against the sanctions list.
- Notify OFSI if there is a match (and stop the letting process immediately).
In most cases, this is a straightforward administrative task, but it adds another point of compliance agents can’t skip.
What Documentation Will Be Required from Tenants?
Letting agents will request standard ID documents for referencing and verify their accuracy and official status carefully.
You may need to provide:
- Full legal name (as shown on a passport or visa)
- Date of birth
- Proof of current UK or overseas address
- Immigration status documents (for non-UK nationals)
- Government-issued photo ID
These are typical of existing Right to Rent requirements, but sanctions checks involve a different set of legal duties.
How Do Sanctions Checks Differ from Right to Rent Checks?
Right to Rent checks verify immigration status, while sanctions checks assess whether a tenant is subject to government-imposed restrictions.
The two processes serve different legal purposes:
| Right to Rent | Sanctions Checks |
|---|---|
| Immigration-related | Financial crime-related |
| Applies only in England | Applies UK-wide |
| Focuses on visa or residency status | Focuses on inclusion in the UK Sanctions List |
| Checks are often manual | Checks are often automated |
| Landlords face civil penalties for non-compliance | Letting agents face both civil and criminal penalties |
Letting agents may carry out both checks simultaneously, especially for overseas tenants. But the data used and the legal consequences differ.
What Should Overseas Tenants Expect?
If you’re relocating to the UK, you must still pass Right to Rent checks—but now the process includes sanctions screening
In our experience working with international tenants, the process is unlikely to be problematic. However, do be aware of the following:
- Expect additional checks beyond your visa and passport verification.
- You may need to provide certified translations of official documents if your ID is not in English.
- Delays are possible if third-party referencing agencies need to confirm names with unusual spellings or transliterations.
Overseas tenants applying through corporate relocation agreements should prepare for this extra formality—even if all other documentation is already in place.
Will Sanctions Checks Cause Delays?
While automated systems process most tenant sanctions checks instantly, the additional step may slow down overall referencing.
In typical referencing processes, delays occur when documents are incomplete or inconsistencies arise. The sanctions check itself usually runs automatically and completes in seconds.
However:
- A flagged name (even if it’s a false positive) may require manual review.
- Referencing agencies may pause the application until verification is complete.
- Agents cannot legally proceed if they confirm a match.
If you’re planning to move on a tight deadline, this is worth factoring in.
What Happens If There’s a Match?
If an applicant is on the UK Sanctions List, the letting agent must report the case to OFSI and halt the application.
This is a non-negotiable legal requirement. Failure to report a match carries significant penalties for the agent, including fines and possible prosecution.
The letting agent won’t tell tenants they are ‘on the list’ as a matter of process. Instead, agents will simply stop proceeding and follow the correct legal procedure.
Thankfully, matches will likely be rare—but the rules are strict.
How Can Tenants Prepare for the New Checks?
The best way to prepare is to have all your documentation ready and to double-check for accuracy.
Here’s what we recommend:
- Use your full legal name as it appears on your official ID
- Provide up-to-date address history and proof of residency
- Respond quickly to any requests for clarification or additional documents
- Keep your visa and Right to Rent documents in a single, secure file
- Don’t panic if you hear about sanctions checks—they’re routine for most people
For international assignees, your relocation provider may already assist with these steps—but it’s worth checking to ensure nothing is missing.
Are Letting Agents Ready for the Change?
Yes, most letting agents have been preparing for this since the update to the Money Laundering Regulations in 2023.
The change comes as part of updated guidance from the National Trading Standards Estate and Letting Agency Team (NTSELAT). It aligns tenant referencing with broader anti-money laundering efforts already in place for landlords, sellers, and buyers.
Many letting agents are using third-party tools to run sanctions checks discreetly within the existing referencing process. Tenants won’t usually be aware unless something needs further clarification.
What Are the Legal Implications for Letting Agents?
Letting agents face both civil and criminal penalties if they fail to carry out tenant sanctions checks or report a match.
The penalties include:
- Fines issued by OFSI for failing to carry out checks
- Criminal liability for wilfully ignoring known sanctions
- Licence or regulatory breaches that could affect their ability to operate
These risks mean letting agents are taking the process seriously—and tenants should too.
Final Thoughts on Tenant Sanctions Checks
The UK rental market has added tenant sanctions checks as its latest compliance measure. While the process may sound intimidating, it’s mainly administrative. If you’ve rented in the UK before, much of the process will feel familiar.
For overseas tenants, this is a reminder that legal compliance doesn’t stop with your visa. Make sure your documentation is clear, complete, and ready to go.
The checks may feel like just another hoop to jump through—but they’re here to stay. The better prepared you are, the faster the process will move.
FAQ: Tenant Sanctions Checks
What Is the UK Sanctions List?
The UK Sanctions List is a register maintained by OFSI, detailing individuals and organisations subject to financial sanctions.
Will My Foreign Name Trigger a Match?
No. Matches are based on full name, date of birth, and other identifiers. The system requires manual review for false positives.
Is This the Same as a Credit Check?
No. Sanctions checks have nothing to do with your credit history. They check for financial crime restrictions, not borrowing behaviour.
Speak to one of our experts or send a message today and find out how we can add value to your relocation programme.
