Landlords should expect more form filling after agents were advised to complete due diligence on all their clients to combat money laundering.

Recently approved government guidance designed to help property agents comply with money laundering regulations - covering customer due diligence, record keeping and reporting suspicious activity, along with other anti-money laundering (AML) documents '� aims to clarify the rules and set out the next steps to improve their effectiveness.

Propertymark says because of this, and the Proceeds of Crime Act, it would be best practice for all letting agents - regardless of whether they fall under the definition of regulated businesses (renting properties for ��10,000 a month or more) - to carry out customer due diligence on landlords, tenants, guarantors, permitted occupiers, and any other relevant parties.

Risk assessment

It says agents should establish and maintain an up-to-date written risk assessment and written policies, controls and procedures to mitigate and manage the risks of money laundering and terrorist financing, as well as appointing a senior manager responsible for compliance.

Timothy Douglas (pictured), head of policy and campaigns, says that without action, the UK property market remains vulnerable to attack.

He adds: 'We know that additional legislative measures will be introduced as part of a second Economic Crime Bill later this year to safeguard and support the UK'�s open economy and it'�s clear from the review that the UK government is proposing further work through a second Economic Crime Plan to improve the implementation of the regulatory framework.

Alongside action from businesses, effective supervision is key, and we will continue to work with the UK government to shape future reforms.'�

Read more about AML regulations.