The Economic Crime Levy was introduced in the 2020 Budget, as a method of raising £100 million per year to fund the 2019 Economic Crime Plan and tackle money laundering.
A technical consultation period is currently underway. This will end on 15 October 2021, so that the final legislation can be included in the 2021/22 Finance Bill.
The new levy affects businesses with revenue over £10.2 million per annum, that are also regulated for Anti Money Laundering purposes.
Depending on the amount of revenue, businesses will fall into one of three categories:
The actual fees to be faced by businesses will vary according to the size of the company and will be specified in the Finance Bill.
However, early indications are that the Levy will vary between:
The Levy will be collected by the appropriate supervisory body for each entity, such as the Financial Conduct Authority, HMRC, or the Gambling Commission.
The levy year starts from 1st April 2022 and will be collected in 2023/24. This is a year later than originally planned, giving businesses a little more time to recover from the effects of the COVID-19 pandemic.
If you would like further information, or you want to speak to someone about how this Levy might affect your business, please contact your usual LF contact for guidance.