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New anti-money laundering levy for regulated businesses

As part of the Finance Bill 2021-22 published last week, the government is introducing the framework for a new levy – the Economic crime (Anti-money laundering) levy -  for regulated businesses, effective from 1 April 2022. 

The levy applies to all medium, large or very large entities conducting regulated business.  A regulated business is a business carried on by a person by virtue of being a relevant person within the meaning of Regulation 8 of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.  

Relevant persons include credit institutions, financial institutions, professional service firms such as auditors, external accountants as well as independent legal professionals.  Relevant persons also include trust or company service providers, estate agents, high value dealers, casinos, auction platforms and art market participants.

The annual levy is a fixed fee and is size dependent (broadly, UK turnover as defined in the Companies Act 2006 plus other amounts in accordance with generally accepted accounting principles, with some adjustments).  The thresholds are set out below:

• Medium sized business, with UK revenues between £10.2m and £36m - £10,000 charge.

• Large business, with UK revenues between £36m and £1bn - £36,000 charge.

• Very large business, with UK revenues over £1bn - £250,000 charge.

The levy will need to be paid by impacted businesses annually.

HMRC will be the collecting authority in most cases, but the appropriate collection authority will differ for FCA regulated entities and those for whom the Gambling Commission is a supervisory authority.

Speak to an expert

Please do not hesitate to contact us to help you understand whether your business meets the size conditions or not and how this levy might apply to your business.

About the author

Antoine Housden

+44 (0)207 710 3121
housdena@buzzacott.co.uk
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The levy applies to all medium, large or very large entities conducting regulated business.  A regulated business is a business carried on by a person by virtue of being a relevant person within the meaning of Regulation 8 of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.  

Relevant persons include credit institutions, financial institutions, professional service firms such as auditors, external accountants as well as independent legal professionals.  Relevant persons also include trust or company service providers, estate agents, high value dealers, casinos, auction platforms and art market participants.

The annual levy is a fixed fee and is size dependent (broadly, UK turnover as defined in the Companies Act 2006 plus other amounts in accordance with generally accepted accounting principles, with some adjustments).  The thresholds are set out below:

• Medium sized business, with UK revenues between £10.2m and £36m - £10,000 charge.

• Large business, with UK revenues between £36m and £1bn - £36,000 charge.

• Very large business, with UK revenues over £1bn - £250,000 charge.

The levy will need to be paid by impacted businesses annually.

HMRC will be the collecting authority in most cases, but the appropriate collection authority will differ for FCA regulated entities and those for whom the Gambling Commission is a supervisory authority.

Speak to an expert

Please do not hesitate to contact us to help you understand whether your business meets the size conditions or not and how this levy might apply to your business.

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