How London Landlords Can Strengthen AML Compliance: Practical Steps After the Free November Webinar | Landlord Insights | Rentals & Sales

Why AML Compliance Matters More Than Ever for Landlords

Anti-money laundering regulations affect all property professionals, including landlords, especially in London’s dynamic market where complex ownership structures and high-value transactions are common. Failure to comply can lead to hefty fines, reputational damage, and even criminal investigations.

The free AML webinar on 27 November 2025, hosted by Letting Agent Today, focuses on key areas such as customer due diligence (CDD), clarifying when to apply simplified versus enhanced due diligence, and how to verify complex ownership — a growing challenge in private rentals.

Understanding Simplified vs Enhanced Due Diligence

Simplified Due Diligence (SDD) applies where the risk of money laundering is low, such as when dealing with publicly listed companies or low-value transactions.
Enhanced Due Diligence (EDD) is mandatory for higher-risk scenarios, including tenants or clients with complex or opaque ownership, politically exposed persons (PEPs), or where unusual transaction patterns arise.

Landlords must be able to differentiate and apply these standards correctly. For example, a single-unit accidental landlord renting to a straightforward tenant may only need SDD, but portfolio landlords dealing with trusts or overseas entities should apply EDD.

Verifying Complex Ownership Structures

Ownership can be layered through companies, trusts, or multiple individuals, making verification tricky. The webinar will offer practical tools and checklists to:

Identify beneficial owners behind entities.
Use official registries such as the UK’s People with Significant Control (PSC) register.
Recognise red flags like nominee directors or unverifiable addresses.

For landlords managing HMOs or portfolios with multiple ownership layers, this is crucial to avoid unknowingly facilitating money laundering.

Common Pitfalls and How to Avoid Them

Typical errors include:

Inconsistent documentation collection.
Relying on outdated information.
Lack of staff training on AML updates.

Landlords should implement clear workflows that ensure timely verification and updates of tenant and client information.

Different Landlord Profiles, Different Compliance Needs

Single-unit and accidental landlords: Focus on basic ID checks and tenant background verification. Use streamlined processes but remain vigilant for unusual circumstances.
Portfolio landlords and HMOs: Require robust AML policies, including regular audits and comprehensive ownership checks.

Immediate Next Steps to Strengthen AML Compliance

Register for the 27 November webinar: This free session will provide up-to-date insights directly from AML experts.
Audit your current due diligence procedures: Map out your tenant and client verification steps and compare them against AML guidelines, especially concerning ownership complexity.
Train staff: Ensure anyone involved in lettings or property management understands the latest AML obligations and the distinction between SDD and EDD.
Update documentation checklists: Incorporate PSC checks and beneficial ownership verification where relevant.
Schedule a compliance review: Consider a professional audit to identify gaps and implement improvements.

How Rentals & Sales Can Support You

Our specialist landlord compliance team offers tailored portfolio reviews, AML compliance audits, and staff training sessions designed for London’s varied landlord profiles. We help you embed practical workflows that reduce risks and ensure regulatory adherence.

Compliance disclaimer: This article provides general information and does not constitute legal advice. Landlords should consult AML specialists or legal professionals for specific guidance.