New FSC List Search in Referencing Tool

The Guild of Residential Landlords is pleased to introduce an essential enhancement to our tenant referencing service. Subscribers can now benefit from an automatic search of the Financial Sanctions Consolidated (FSC) list at no additional cost. This feature is designed to help letting agents comply with the evolving financial sanctions regulations efficiently and accurately. Although not a legal requirement for landlords, landlords nevertheless benefit from the search.

How the New Feature Works

When a tenant or guarantor application is processed through our referencing service, the system automatically checks the applicant’s name against the FSC list maintained by the UK government. If one or more matches are found, our AI evaluates the results and provides a recommendation based on the details from the sanctions list. The outcome of this search is included in the comprehensive PDF referencing report.

In addition, subscribers have quick access to a direct search button on the referencing page. This button links to the government’s official FSC list search page, enabling agents to verify landlord clients or other parties without running a full tenant reference. This function is free to use and supports due diligence in lettings.

Why This Matters: Reporting Duties for Letting Agents

From 14 May 2025, letting agents in England and Wales are subject to new financial sanctions reporting obligations under UK law. The Office of Financial Sanctions Implementation (OFSI), part of HM Treasury, has clarified that letting agents must report any knowledge or reasonable suspicion that a prospective landlord or tenant is a designated person subject to sanctions or is breaching sanctions.

These obligations apply specifically to letting agents as “relevant firms” when carrying out “letting agency work,” such as acting on instructions from prospective landlords or tenants for leases of one month or more. Reporting must be made promptly to OFSI if suspicions arise during the formal letting process.

For landlords, these duties do not apply directly, but awareness of these regulations helps ensure smooth compliance in partnership with letting agents.

Key Points of the New Sanctions Reporting Rules

• Who is affected? Letting agents classified as “relevant firms” under sanctions regulations.
• When do obligations arise? From the point a prospective landlord instructs the agent, or when a tenant’s offer is accepted and the agreement process begins.
• What must be reported? Any suspicion or knowledge of a person being a designated person or breaching sanctions, including details of funds or economic resources held.
• No monetary threshold: Reporting is required regardless of the rental amount.

Further Guidance and Resources

To support compliance with these new rules, the following official resources provide detailed guidance and practical advice:

• Financial sanctions guidance for letting agents (GOV.UK)
• OFSI general financial sanctions guidance
• OFSI consolidated list of designated persons
• OFSI consolidated list search page
• HMRC guidance on Anti-Money Laundering Supervision for Letting Agents
• OFSI webinars and events
• Sign up for sanctions email alerts

Conclusion

The integration of automatic FSC list checks into our referencing service reflects the Guild’s commitment to providing practical tools that help landlords and letting agents meet their legal obligations efficiently. By facilitating early identification of sanctioned individuals, this feature supports compliance with the new sanctions reporting regime and helps safeguard the integrity of the rental market.