Almost all property-sourcing agents are breaching Anti-Money Laundering rules and are at risk of heavy fines, a new hard-hitting industry report claims.

Widespread non-compliance with AML regulations is blighting the property-sourcing sector, according to analysis by trade body The National Association of Professional Sourcing Agents (NAPSA).

Alarming 90%

Research by NAPSA into 500 property-sourcing businesses found that “an alarming” 90% are operating illegally based on ‘surface-level checks’ alone.

The report highlights that 136 sourcing firms have been fined a combined total of over £1.1 million by HMRC for failing to register for AML supervision.

The report identifies poor quality, unregulated training as a significant contributor to the problem.

Many courses mislead agents, suggesting that compliance is a simple checkbox exercise or that registrations are unnecessary.

This poor guidance leaves agents vulnerable to significant fines from governing bodies like HMRC, NAPSA says, and increases the risk of their unwitting involvement in serious financial crimes.

Timely warning

NAPSA urges investors to recognise the risks of working with non-compliant agents, and to verify an agent’s credentials before engaging their services.

With an estimated £10 billion laundered through UK property annually, the report serves as “a timely warning”, NAPSA says.

Also, stricter regulatory measures are anticipated in 2026, making it essential for sourcing agents to ensure they have the correct knowledge, registrations, documents, and insurance in place.

Inspire action

Tina Walsh, CEO of NAPSA, says: “I firmly believe that by working together, we can create a property-sourcing sector that is not only compliant but also trusted and respected.

“This report is a step in that direction, to raise awareness, to improve standards, and I hope it inspires meaningful action across the industry.”

The report ‘Critical Mistakes Uncovered in the Property Sourcing Sector 2025’ is available to download here

Industry Reaction

Sean Hooker, Head of Redress at Property Redress, says: “Whilst many property sourcers are ensuring they comply with the laws and regulations, many are either wilfully, or through ignorance, disregarding their obligations.

“They are not only putting themselves at risk of fines and prosecution, but also endangering their clients, many of whom trust them with their financial futures and suffer loss and distress as a result of poor practice and the cavalier approach of these rogue operators,” he says.

“We will be collaborating with NAPSA to help find solutions, but also pressing hard to encourage Government to work harder and faster to introduce measures to ensure all property agents are regulated, trained, and adhere to a Code of Practice. NAPSA have done much of the groundwork, so there is no excuse.”

More on AML