What Scotland's Landlords Need to Know About the New Anti-Money Laundering (AML) Rules — And Why Professional Support Has Never Been More Important
- Sean McMahon
- Jun 14
- 3 min read
Updated: Jul 15
Significant new Anti-Money Laundering (AML) regulations have recently come into effect, introducing sweeping changes across the lettings industry — and placing fresh obligations directly on landlords themselves. What was once largely a compliance concern for agents dealing with high-value properties is now a responsibility every landlord must take seriously, regardless of the rent levels involved.
At The Letting Experts here in Edinburgh, I am already fully up-to-speed with these regulations — and more importantly, equipped to ensure my clients remain fully compliant, protected, and stress-free.
Let’s break down what these changes mean for landlords — and why partnering with a professional, compliant letting agent is now more crucial than ever.
1️⃣ Scotland's Landlords Now Fall Under Anti-Money Laundering Rules
Previously, AML obligations were primarily the responsibility of agents letting properties for more than £8,300 per month. That has now changed. In response to criminals exploiting the property sector to launder illicit funds, the government has broadened the scope of AML legislation. Landlords, not just agents, may now have direct compliance responsibilities — even for modestly priced rental properties.
This marks a significant shift — and one that many landlords here in Edinburgh are not yet fully aware of.
2️⃣ Both Tenants and Landlords Must Now Be Sanctions Checked
Under the new rules, letting agents are legally required to carry out annual checks on both tenants and landlords against government sanctions lists. This applies both to new tenancies and to existing tenancies that continue to roll over.
For landlords managing properties themselves, this means proactively obtaining, maintaining, and updating sanctions checks every year. For my clients, however, this is all handled seamlessly as part of my fully managed service — ensuring full compliance with no hassle or risk.
3️⃣ Let-Only Arrangements: A Legal Grey Area
For Scotland's landlords using let-only services — where the agent finds a tenant but doesn’t manage the property — compliance responsibilities become much murkier. In many cases, it’s unclear who remains legally responsible for ongoing Anti-Money Laundering Rules compliance. The safest option? Work with a professional agent who handles full management, ensuring all legal obligations are continually met.
4️⃣ Where Agents Handle Rent, They Handle Compliance
If your agent collects rent on your behalf (as I do for my clients), the legal responsibility for sanctions checks and AML compliance rests with the agent. This gives landlords significant peace of mind — provided, of course, they’re working with an agent who fully understands and adheres to the new rules.
5️⃣ Potential Costs — And Hidden Risks of Cutting Corners
Professional sanctions checks involve specific software, tools, and services — many of which carry additional costs. Some agents may seek to pass these costs directly to landlords, while others, such as myself, include them within their management packages.
What’s far more costly, however, is the risk of failing to comply. Financial penalties, criminal liability, and reputational damage are very real consequences for non-compliant landlords.
6️⃣ Listing Platforms May Demand AML Compliance
Major online platforms like Rightmove and Zoopla are expected to begin requesting AML compliance evidence before accepting listings. This would add yet another layer of administrative responsibility for landlords trying to self-manage — or those working with agents who are not fully prepared.
7️⃣ Self-Managing Carries New Legal Risks
While some landlords may still be tempted to self-manage in order to save money, the reality is that non-compliance could now expose them to severe legal and financial penalties. The regulations are complex, continually evolving, and unforgiving of errors.
By contrast, working with an experienced, fully compliant agent like myself removes this burden entirely. My clients benefit from:
Full AML compliance
Annual sanctions checks included
Transparent, upfront costs
Peace of mind that every legal obligation is met
In Summary: Don’t Leave Compliance to Chance
The new AML rules represent one of the most significant regulatory changes landlords have faced in years. As these requirements tighten, the risk of accidentally breaching regulations — and facing heavy penalties — is growing.
At The Property Experts, I take care of every aspect of compliance, allowing landlords to focus on what matters most: maximising rental income while staying fully protected.
👉 If you’re unsure how these new rules affect you, or if you simply want the confidence of knowing you’re fully compliant, contact me today for a free, no-obligation consultation.
Letting Agency Registration Number: LARN2503005
Comments