Anti-Money Laundering (AML) Checks in Property: What Buyers, Sellers, Landlords and Renters Need to Know

Money laundering is a serious criminal offence, and the UK property sector is often targeted due to the large sums of money involved. To protect the industry from abuse, estate agents and solicitors must carry out strict anti-money laundering (AML) checks across all types of transactions.

Whether you’re buying, selling, letting, or renting, you may be asked to verify your identity, provide documentation, and explain where your money has come from.

Here’s what you need to know about AML checks at every stage of a property transaction.

What Is Money Laundering?

Money laundering is the process of making illegally obtained money appear legitimate. Criminals often use complex financial transactions or property purchases to ‘clean’ dirty money so it can be used without suspicion.

In response, the UK government has introduced robust AML legislation that requires regulated professionals—including estate agents, solicitors, and letting agents—to detect and report suspicious activity.

Why Is the Property Sector Targeted?

Property transactions often involve large sums of money, making them attractive to criminals. Money laundering in the property market might involve:

Buying a home with illegally obtained funds, then reselling it to create clean proceeds
Using mortgage fraud to acquire property
Paying rent or fees with criminal money, then requesting refunds
Letting property funded by illicit means

Because of these risks, AML checks are now a legal requirement across all property transactions.

Key Legislation

AML obligations in the property sector are set out in several laws, including:

Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017
The Proceeds of Crime Act 2002
The Terrorism Act 2000

Professionals must conduct customer due diligence (CDD), verify client identities, and submit a Suspicious Activity Report (SAR) to the National Crime Agency (NCA) if there are concerns.

AML Checks for Buyers

As a buyer, especially a cash buyer, you’ll face the most scrutiny. Your estate agent and solicitor will conduct checks to verify your identity and understand the source of your funds.

Buyer AML Requirements:

Proof of identity (passport or driving licence)
Proof of address (recent utility bill, bank statement, or HMRC tax notice)
Proof of funds:
- Mortgage Agreement in Principle (AIP)
- Bank statements showing deposit or savings
- Evidence of property sale, inheritance, or business income

Your solicitor may request up to six months of bank statements. If there’s any doubt about where your money has come from, the purchase could be delayed or reported to the NCA.

AML Checks for Sellers

Although sellers are not typically paying large sums into the property market, they still need to prove their identity and ownership of the property.

Seller AML Requirements:

Proof of identity
Proof of address
Verification of ownership (checked via Land Registry)

If the seller is also buying another property, their solicitor will carry out further checks on their purchase funds.

AML Checks for Landlords

Letting out a property may appear less risky, but landlords still need to go through AML checks—especially when instructing letting agents or property managers.

Landlord AML Requirements:

Proof of identity and address
Proof of property ownership
Company documentation (if letting through a limited company)
Bank account verification (to receive rental income)

Letting agents may also assess the source of the funds used to purchase the rental property.

AML Checks for Renters

Tenants are not buying property, but they still undergo checks to prevent illegal funds being used to pay rent or secure tenancy.

Renter AML Requirements:

Proof of identity (passport or driving licence)
Proof of address
Proof of income or employment (payslips, bank statements, or employment contract)

Where tenants are paying rent in advance or using a guarantor, additional evidence may be required.

Letting agents are legally obliged to verify that the rental payments come from a legitimate source. Large advance payments from overseas or in cash may trigger further investigation.

What Happens If Something Looks Suspicious?

If an estate agent, solicitor, or letting agent suspects that part of a transaction involves criminal activity—and those concerns can’t be resolved—they are legally required to file a Suspicious Activity Report (SAR) with the National Crime Agency.

They are not allowed to tell the client that a report has been submitted. Doing so is a criminal offence known as tipping off.

Summary: AML Checks Are a Legal Safeguard

AML checks are not about assuming guilt—they’re about protecting the UK property market from criminal exploitation. Whether you’re a buyer, seller, landlord, or renter, you play a role in maintaining transparency.

Estate agents and solicitors are legally obliged to: