Why does Griffin Bank charge landlord verification fees when other banks don't?

Griffin uses specialist data sources and tools to meet its obligations under the Money Laundering Regulations 2017 (MLRs). This proactive compliance approach protects your business and your landlords from regulatory risk.

The short answer

All UK banks must comply with the MLRs 2017. These regulations require banks to verify account holders and monitor for financial crime. Griffin uses specialist third-party verification tools to do this, and the cost is passed through as a verification fee.

Why don't other banks charge for the same checks?

Banks handle compliance differently. Some absorb costs into general fees or cross-subsidise from other revenue. Others take a lighter-touch approach. Griffin has deliberately invested heavily in risk infrastructure from the outset - a strategic decision, not an arbitrary charge.

The MLRs set requirements all banks must meet, but the methods vary, and banks that take a lighter-touch approach to AML compliance are exposed to significant enforcement risk. Recent high-profile FCA fines demonstrate the consequences:

Note: the FCA also opened an AML investigation into Lloyds Banking Group in 2024; this was closed in 2025 without enforcement action.

The FCA has made clear there will be no let-up in targeting AML failures. When banks receive fines of this scale, their typical response is to de-risk by closing accounts in sectors they consider higher risk. Letting and estate agents are increasingly affected by this, with high street banks closing client accounts or refusing to open new ones, stating that client accounts are "outside of our risk appetite."

This is where Griffin and Calmony's approach provides a genuine advantage. Because Griffin has invested in proper compliance infrastructure from day one, it accepts and manages the risk profile of property agents rather than retreating from it - meaning a higher probability of keeping your client account open and operational, rather than facing unexpected closure.

Griffin's CEO David Jarvis has written about the concept of "regulatory debt" - what happens when financial institutions under-invest in compliance. While a lighter touch seems cheaper short term, it risks frozen operations, FCA fines, and sanctions against leadership. You can read the full article here: Regulatory Debt - Griffin Blog.

What checks are involved?

Standard UK individual landlords go through a straightforward ID&V process. Overseas landlords and those with complex ownership structures (e.g. limited companies) require enhanced due diligence, including:

• International identity verification using specialist data sources
• Company ownership checks to identify beneficial owners
• Sanctions and Politically Exposed Persons (PEP) screening
• Ongoing monitoring obligations under the MLRs

Why is there an annual re-verification fee?

Regulation 28(11) of the MLRs 2017 requires banks to carry out ongoing monitoring of all business relationships, including keeping Customer Due Diligence records up to date. For higher-risk relationships such as overseas and complex ownership landlords, enhanced monitoring with more frequent reviews is required.

This is no different to any business account holder - if you hold a business bank account, your bank asks you to re-verify your information annually, which is then re-checked. Company structures change, directors are appointed, shareholders change, entities move jurisdiction. The annual check ensures everything remains current and compliant.

How the fee works:

• Initial verification: one-off fee when first verified.
• Annual re-verification: same fee applies each year if the payee is active.
• Active payee: has received or paid funds within the last six months.
• Inactive payees: no fee if no transactions in over six months.

Note: a company that passed a standard check initially may be reclassified as complex ownership at re-verification if the ownership structure has changed (e.g. new overseas shareholders or directors).

What does this mean for your landlords?

The verification fee ensures landlord identities are properly checked in line with UK law, protecting them by ensuring the bank holding their rental income operates within a robust compliance framework - and protecting your agency from regulatory risk that could disrupt property management and payments.

For overseas and complex ownership landlords, annual re-verification keeps records current and reduces the risk of account freezes or payment disruptions that occur when compliance issues are discovered late.

Key legislation

• MLRs 2017 (as amended) - customer due diligence, enhanced due diligence, and ongoing monitoring (Reg 28(11))
• Sanctions and Anti-Money Laundering Act 2018 - UK sanctions framework
• OFSI Financial Sanctions (May 2025) - letting agents must screen landlords and tenants against the UK sanctions list

Further reading

• Griffin Blog: Regulatory Debt by David Jarvis
• GOV.UK: Financial sanctions guidance for letting agents
• GOV.UK: Money laundering supervision for letting agency businesses
• Legislation.gov.uk: MLR 2017 Part 3 - Customer Due Diligence
• Banks are closing their doors to letting agents - Letting Agent Today

This article is for informational purposes only and does not constitute legal advice.