Finance Bill 2022 introduces an Economic Crime (Anti-Money Laundering) Levy payable as a fixed fee by entities subject to the Money Laundering Regulations and based on entity size. Small entities will be fully exempt. 

The levy will be paid by entities that are registered for Anti-Money Laundering (AML) purposes under the Money Laundering, Terrorist Financing and Transfer of Funds Regulation 2017 that are medium, large or very large in size based on their UK revenue.

  • The levy will first be charged on entities that are regulated during the financial year from 1 April 2022 to 31 March 2023.
  • The amount payable will be determined by reference to their size based on their UK revenue from periods of account ending in that year.
  • First payments will be due in the financial year 1 April 2023 to 31 March 2024.
  • No tax relief is given for the cost of the levy for the purposes of Income Tax or Corporation Tax.
  • The levy will be paid as a fixed fee based on the size band an AML-regulated entity falls into based on their UK revenue.
  • It applies to partnerships as well as companies.

Size

UK revenue

Levy

Small

Under £10.2m

-

Medium

£10.2m and £36m

£5,000 to £15,000

Large

(£36m - £1bn)

£30,000 to £50,000

Very large

Over £1bn

£150,000 to £250,000

 

Sums payable are to be proportionately adjusted if the relevant accounting period of the entity is a period other than 12 months or is unregulated for part of the period.

The sectors that the government expects that will be impacted are:

  • Credit institutions.
  • Financial institutions.
  • Auditors, insolvency practitioners, external accountants and tax advisers.
  • Independent legal professionals.
  • Trust or company service providers.
  • Estate agents and letting agents.
  • High-value dealers, casinos, auction platforms and art market participants.
  • Cryptoasset exchange providers and custodian wallet providers.

The levy will be collected by the three public sector AML statutory supervisors: the Financial Conduct Authority, HM Revenue & Customs and the Gambling Commission.

External links

Draft legislation and explanatory notes

Policy Paper Economic Crime (Anti-Money Laundering) Levy


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