Estate agents are routinely failing to check whether tenants are on the UK’s national financial sanctions list.
A poll from Goodlord found that 28% of agencies with more than 11 staff are failing to perform Politically Exposed Person (PEPs) and sanctions checks, despite new rules having come into force almost six months ago.
Agencies are putting themselves at risk of fines worth up to £10,000 for a first offence and £20,000 for repeat offences.
Kerry Aldridge, director of compliance at Goodlord, said: “This year has thrown a lot at the industry. From new compliance rules to the Renters’ Rights Bill, agents have had a huge amount to contend with and prepare for.
“But it’s still fairly shocking to see how many agencies, particularly those with larger operations, are playing such a risky game when it comes to PEPs and sanctions checks.
“With fines stretching into the thousands, over a quarter of agents are exposing themselves to a big financial threat at a time when many can least afford it. We recommend taking immediate action to upgrade processes and ensure your business isn’t vulnerable.”
Smaller agencies are faring better, as 85% of firms with only 1-5 staff members check every tenant.
