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Businesses set to pay money laundering levy

Resources

Businesses set to pay money laundering levy

This page was last updated on May 10, 2022
Some regulated businesses now face paying an annual charge of between £10,000 and £250,000 as part of the Government’s drive to combat international financial crime through newly introduced anti-money laundering levy regulations.

The Economic Crime (Anti Money Laundering) Levy came into effect as part of the Finance Act 2022 and applies to medium, large or very large regulated businesses.

Companies affected by The Economic Crime (Anti Money Laundering) Levy

The levy will be imposed on credit and financial institutions and professional services firms including auditors, external accountants and independent legal professionals. Other affected organisations include trust or company service providers, estate agents, high-value dealers, casinos, auction platforms and those involved in the art market.

Calculating the fee

Companies affected by the regulations are required to pay a fixed fee levy based on their UK turnover – as defined in the Companies Act 2006 – with the first payments due for collection in the 2023/24 tax year based on accounts filed in 2022/23.

Three charging thresholds have been defined:

Medium-sized businesses:

Revenues between £10.2m and £36m will pay a £10,000 charge

Large enterprises:

Revenues of £36m to £1bn pay a £36,000 charge

Very large businesses:

Revenues exceeding £1bn pay a £250,000 charge

Those reporting revenues of less than £10.2m are not affected.

Collecting the fee

HMRC will collect the fee in most cases, except for businesses regulated by the Financial Conduct Authority, where this will be carried by the appropriate collection authority, and organisations that have the Gambling Commission as their supervisory authority.

For further advice and information, please speak to your usual Shipleys contact or one of the specialists shown on this page.


Specific advice should be obtained before taking action, or refraining from taking action, in relation to this summary.

Copyright © Shipleys LLP 2022

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