Chancellor Rishi Sunak delivered his Autumn Budget and Spending Review on 27 October, which he stated that "today’s Budget does begin the work of preparing for a new economy post Covid." As reported, this includes a new Economic Crime (Anti-Money Laundering) Levy.
The Finance Bill 2021-2022 will establish the Economic Crime (Anti-Money Laundering) Levy in legislation.
The Levy will be charged on entities with a turnover in excess of £10.2 million that were subject to anti-money laundering regulations in the preceding financial year, such as accountants, lawyers, estate agents, banks, casinos and art market participants.
The Levy will commence in the financial year running from 1 April 2022 to 31 March 2023. The FCA, HMRC, and the Gambling Commission will collect the levy from their own AML-supervised populations, with HMRC also collecting the levy for the entities supervised by the 22 legal and accountancy professional body supervisors.
As it is estimated that serious and organised crime costs the UK at least £37 billion each year. The new Levy is part of the UK Government’s wider objective, to develop a long-term “sustainable resourcing model” to tackle economic crime.
Please note this article was written by Annette Fong, who is no longer with Ince. If you would like any advice in this regard, please contact Julia Dao.
The UK government is pushing ahead with a levy designed to tackle the £37bn annual cost of economic crime, much of which stems from money laundering.