The Economic Crime (Anti-Money Laundering) Levy was introduced as part of the government’s wider 2019 Economic Crime Plan (ECP), aiming to reduce economic crime. The Levy applies to entities regulated for anti-money laundering (AML) purposes, and will be collected by HM Revenue and Customs (HMRC), the FCA, and the Gambling Commission. Payments will be an annual fixed fee determined by the firm’s UK revenue, with the first collection due in the financial year of 1st April 2023 to 31st March 2024.
Impacted firms include:
- credit institutions
- financial institutions
- auditors, insolvency practitioners, external accountants, and tax advisers
- independent legal professionals
- trust or company service providers
- estate and lettings agents
- high value dealers, casinos, auction platforms and art market participants
- crypto asset exchange providers and custodian wallet providers
The fee will be based on four size bands:
- small (under £10.2m UK revenue)
- medium (£10.2m – £36m)
- large (£36m – £1bn)
- very large (over £1bn)
While small entities will be exempt from the levy, medium entities will need to pay £10,000, large entities £36,000 and entities classified as very large will be charged £250,000.
Firms in-scope registered with the FCA must submit their data via the new Reg Data Report (FIN074) from 1st April 2023. Failure to submit this form may lead to an administrative fee of £250.
How Can Complyport Help?
If you have any questions about the Economic Crime (Anti-Money Laundering) Levy and the FCA’s Reg Data Report (FIN074) submission, or you think your firm may require assistance, please contact Jan Hagen via jan.hagen@complyport.co.uk to book a free consultation.
About Complyport
Complyport is a market leading consulting firm supporting the UK financial services industry for over 20 years. We specialise in providing Governance, Risk and Compliance services to support the regulated financial services industry to raise standards and thrive.
Complyport advises and assists firms to become authorised and to comply with the rules and requirements of regulators on an ongoing basis. We have successfully assisted over 1000 firms to become authorised with the FCA and EU and are providing regulatory support to over 600 regulated firms on an ongoing basis globally. With presence in the UK and EU, as well as via our Associates Network, Complyport can assist firms across multiple jurisdictions.
We specialise in supporting the UK financial services industry with compliance guidance, advice and best practice including support with:
- Internal Audit Function support
- Operational resilience & cybersecurity advice
- CASS advice and protections of client assets
- Prudential support, IFPR, ICARA and financial resilience advice
- Financial Promotions management software solutions
- Comprehensive compliance work-flow management software
- Compliance managed services and resourcing compliance personnel
- Financial crime and forensics
- Consumer Duty implementation advice
- Skilled Person Reviews and regulatory investigation
- Expert Witness
