Turning Compliance into Cash Flow

How the New OFSI Regulations Create Revenue Opportunities

The Regulatory Shift That's Changing Everything 

The letting industry is about to experience a significant transformation. On May 14th, the Office of Financial Sanctions Implementation (OFSI) regulations come into effect, requiring letting agents and block management companies to conduct AML checks on both tenants and landlords. 

"This isn't just another compliance hurdle," explains Glyn Trott, CEO of Calmony. "It's actually an opportunity to generate additional revenue while protecting your business from substantial risks and HMRC/OFSI fines." 

What's Changing? 

The new regulations require: 

• AML checks on anyone paying rent (tenants, guarantors, parents) 

• AML checks on anyone receiving rent (owners, landlords, companies) 

• Continuous 24-hour monitoring for sanctions list updates 

• Verification that bank accounts match the person who passed AML checks 

• Reporting suspicious activity to OFSI 

The consequences for non-compliance? Fines up to £1 million, potential prison time, and director disqualification. 

The Revenue Opportunity Hidden in Compliance 

"Here's where it gets interesting," Glyn explains. "Many of Calmony’s clients are turning these compliance requirements into revenue generation by passing the costs on to landlords—with a margin." 

The Numbers are Compelling: 

Many agencies are charging around £15 for one-off AML-OFSI checks for landlords and their tenants, plus an annual fee of £12.50 for continuous sanctions monitoring. 

"If you have 100 landlords, you could generate thousands in additional revenue this year, and continue earning annually after that," Glyn notes. "Most of our clients are actually in a surplus after covering our costs." 

The "Rich Uncle" Blind Spot 

One of the most critical aspects of the new regulations is monitoring whether the account paying rent belongs to the person who passed the AML check. 

"We call this the 'Rich Uncle' scenario," Glyn explains. "Without proper monitoring, you have no way to verify if the account paying rent belongs to the person you've cleared. This creates enormous liability." 

This is where Calmony's technology provides a crucial advantage. Our platform automatically flags when payments come from unverified sources—a capability most banks simply don't offer. 

Transform Compliance from Burden to Benefit 

With Calmony's Client Accounts and banking software, what could be a massive administrative burden becomes streamlined and efficient: 

• Automated 24-hour sanctions monitoring 

• Instant matching of payment details against verified identities 

• Alerts for suspicious or unverified payments 

• Complete audit trail for regulatory compliance 

"Our clients are reducing their compliance workloads" Glyn shares. "This means you can focus on growing your business rather than drowning in regulatory paperwork." 

Next Steps: Getting OFSI-Ready 

While there will be increased costs to administer these OFSI checks, the revenue opportunity more than offsets them. To prepare: 

• Got to start AML-OFSI checking tenants and the people who are paying the rents (Rich Uncle or bank of mum and dad) 

• Find out if your current bank provides you the account detail for all individuals paying into your client account 

• Start introducing OFSI charges to landlords for tenant AML-OFSI checks and the annual monitoring 

Need more advice 

"Calmony is an OFSI-ready client account in the UK. Our solution helps you avoid violations while creating new revenue streams, transform regulatory compliance from a burden into a business benefit." - Glyn Trott, CEO 

Drop us an email if you need to know more about OFSI or Calmony