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Economic Crime Levy Becomes Effective

The Economic Crime (Anti-Money Laundering) Levy Regulations 2022 (SI 2022 / 269) have been enacted and they make provision for the assessment, payment, collection and recovery of the Economic Crime Levy (“the levy).  They come into force on 1 April 2022.

The Explanatory Note highlights that the levy is charged in accordance with Part 3 of the Finance Act 2022 for the financial year beginning with April 2022 and subsequent financial years, with the following summarising requirements in the Finance Act 2022:

  • Unless an entity has either the Financial Conduct Authority or the Gambling Commission as its supervisory body, HMRC is responsible for the collection and management of the levy;
  • The levy is charged for a financial year if a person carries on a regulated business at any point during the financial year, and is based on that person’s UK revenue for the financial year (pro-rated for periods other than a year);
  • If a person’s UK revenue for the relevant accounting period is more than £10.2 million but not more than £36 million, the levy is £10,000;
  • If a person’s UK revenue for the relevant accounting period is more than £36 million but not more than £1 billion, the levy is £36,000; and
  • If a person’s UK revenue for the relevant accounting period is more than £1 billion, the levy is £250,000.

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