New Government Strategy for Tackling Money Laundering
The UK Government has published its Anti-Money Laundering and Asset Recovery Strategy 2026 to 2029. Its aim is simple - to make it harder for criminals to hide and use money gained from crimes committed.
The government is investing £550 million in the strategy over the next three years. It is built around three key objectives: -
Target - focus efforts where the risk is highest, rather than on low-risk activity.
Integrate - help government organisations share information more effectively.
Empower - give those dealing with law enforcement better tools, skills and powers.
Why does this matters for Property Agents?
Property has long been seen as an easy route for criminals to make illegal money look legitimate, for example by buying homes or hiding who the real owners are. Currently, estate agents are used to carrying out Due Diligence by conducting thorough checks, keeping up to date and accurate records, and ensuring employees undertake the relevant training.
They are also aware of how to spot ‘red flags’ and what the reporting mechanisms are.
What about Letting Agents?
At present, letting agents only fall under the Money Laundering Regulations if they deal with tenancies where the monthly rent is £10,000.00 or more.
The government now plans to review whether this threshold is still relevant and whether letting agents should fall under the same rules as Estate Agents. If the rules are widened letting agents could find themselves needing to carry out anti-money laundering checks. The government has set out their expected timeframes:-
2026/27 - public consultation on letting agent requirements
2027/28 - possible new legislation
2028/29 - any changes come into effect