Upcoming Changes to UK Money Laundering Regulations: What Landlords Need to Know in 2025

Upcoming Changes to UK Money Laundering Regulations: What Landlords Need to Know in 2025

Are you a UK landlord or property investor?
Staying compliant with the latest money laundering regulations is essential for protecting your assets and reputation. With major updates to the UK’s Money Laundering Regulations (MLRs) on the horizon, now is the time to ensure your property management processes are up to date. Here’s what you need to know—and how Procuro can help you stay ahead.

Major Updates to UK Money Laundering Regulations in 2025

1. Clearer Rules on When a Business Relationship Begins
The government is clarifying exactly when a business relationship starts for landlords and letting agents. This means you’ll know precisely when to complete Customer Due Diligence (CDD) checks—whether before accepting a holding deposit, issuing a memorandum of let, or signing a tenancy agreement. This clarity helps you avoid unnecessary delays and ensures you’re always compliant.

2. Thresholds Now in Pounds, Not Euros
All financial thresholds previously set in euros will now be denominated in pounds sterling. This change eliminates confusion over exchange rates and makes compliance much simpler for UK landlords and property businesses.

3. Targeted Enhanced Due Diligence (EDD)
Enhanced Due Diligence will now only be mandatory for transactions involving countries on the FATF “Black List”—the highest-risk jurisdictions. The blanket requirement for “Grey List” countries is gone, allowing landlords and agents to take a more risk-based, proportionate approach. Understanding the difference between Black List and Grey List countries is now essential for your risk assessments.

4. New Guidance on Source of Funds Checks
HM Treasury will soon provide practical guidance on when and how to conduct source of funds checks, especially for ongoing landlord-tenant relationships or long-term property management. This is particularly relevant for landlords with multiple properties or long-standing tenants.

5. Digital ID Verification Gets the Green Light
The government is endorsing digital ID verification, with new standards and guidance on how to use these tools for AML compliance. For landlords, this means you can streamline tenant onboarding and compliance checks with secure, government-approved digital ID solutions—saving time and reducing paperwork.

6. Stay Tuned for Updated HMRC Guidance
All these changes will be reflected in updated guidance from HMRC, expected soon. Landlords and property managers will need to review and update their AML policies, risk assessments, and staff training to stay compliant.

Why Compliance Matters for Landlords

Failing to comply with the latest money laundering regulations can result in heavy fines, reputational damage, and even criminal liability. As regulations become more targeted and risk-based, it’s more important than ever to have robust processes in place.

How The Procuro Makes Compliance Easy for Landlords

At The Procuro, we specialise in property management for UK landlords, with a strong focus on compliance and risk management. Here’s how we help you stay ahead:

• Automated CDD and EDD Checks: We handle all due diligence at the right stage, so you never miss a compliance deadline.
• Digital ID Integration: Our systems are ready for the new digital ID standards, making tenant onboarding fast and secure.
• Ongoing Monitoring: We keep your portfolio compliant with regular risk assessments and up-to-date AML checks.
• Expert Guidance: Our team stays on top of every regulatory update, so you don’t have to.
• Peace of Mind: With The Procuro, you can focus on growing your property investments, knowing your compliance is in safe hands.

Ready to Future-Proof Your Property Portfolio?
Don’t let regulatory changes catch you off guard. Partner with Procuro for expert property management and compliance support. Contact us today to find out how we can help you protect your assets, streamline your operations, and stay fully compliant with the latest UK money laundering regulations.