The Chancellor’s latest Budget Report outlined that the Government will introduce a £100 million Economic Crime Levy, otherwise known as the AML Levy no earlier than April 2022 to fund action to tackle money laundering and ensure delivery of reforms in the Government’s Economic Crime Plan.
This levy will be payable by companies subject to the UK Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 and the new Money Laundering and Terrorist Financing (Amendment) Regulations 2019, which saw cryptoasset exchange providers, art market participants and custodian wallet providers falling within scope of the Money Laundering Regulations.
The Government’s Economic Crime Plan is focused on delivering the reform of the Suspicious Activity Reporting (SARs) regime; improving law enforcement capabilities, including for tackling fraud; improving the UK’s supervisory regime for anti-money laundering and counter-terrorism financing (AML/CTF); and reforming Companies House. The co-ordination between the public and private sector and between all organisations on the front line of tackling economic crime was seen as critical and therefore a shared funding model was preferred.
The Government were due to launch a consultation on the levy later this spring however this may now be delayed. The consultation will seek views on how the levy will be paid; which businesses should pay; how levy liability should be calculated; how it will be collected and how the Government can ensure transparency over levy spend.
At the moment it is not clear what metrics the Government will use to decide how much companies will pay however we are aware of views expressed at the Government’s Economic Crime Strategic Board that “new or existing generators of economic crime risk should be financial contributors to mitigating those risks, and that there should be a relationship between the cost and benefit of what is being done”. With levies of this nature, we also expect to see a threshold exempting SMEs and therefore we would strongly recommend responding to the consultation if your business falls within the SME category.
The consultation is therefore a great opportunity for companies to share their views with Government on what is a further charge directed at the financial services sector in the wake of significant headwinds due to Brexit and COVID-19. Once launched we will publicise the link through our website.
Contact
![Contact](/getattachment/b4b90d05-36ab-40ba-8620-b1122f5ec12d/mark-hickson-1.jpg?variant=HeroImageTabletVariantDefinition)
Mark Hickson
Head of Business Development
onlineteaminbox@brownejacobson.com
+44 (0)370 270 6000
Discover more
Related expertise
You may be interested in...
Legal Update
Is your cyber resilience shored up?
Legal Update - Procurement Act
Bids from overseas supplier under the Procurement Act 2024
Opinion
New proactive duty to prevent sexual harassment: is your organisation ready?
Opinion
Forced labour goods: a landmark decision
Legal Update
Tobacco and snus use – are insurers asking the right questions?
Legal Update - Building Safety Act
Case update: Secretary of State for Levelling Up, Homes and Communities v Grey GR Limited Partnership
Legal Update
How local authorities can deal with unlawful encampments
Legal Update
Economic Crime and Corporate Transparency Act 2023 – impact of changes implemented on 4 March 2024
Published Article
English Commercial Court rules against Russian exclusive jurisdiction clauses
Legal Update
AI deep fake fraud exposed - five key lessons and how we need to respond
Legal Update
Forest Risk Commodities regulations: Steps food businesses should take
Legal Update
Cyber-attacks in UK universities: Why failing to prepare is no longer an option
On-Demand - Shared Insights
Shared Insights: Sexual safety in the workplace — how leaders can help to create a sexual safety culture
Opinion
Regulator warning on future dangers of asbestos
Legal Update
The Home Affairs Committee launched another inquiry into fraud - Stop! Think Fraud
Legal Update
Progress on the Automated Vehicles Bill
Legal Update
UK falls to lowest position for corruption – so what’s going wrong?
Legal Update
The downfall of Vesttoo: Fraudulent letters of credit
Legal Update - Food and drink regulatory update
Food for Thought: Food and drink regulatory update - Autumn 2023
Legal Update
Economic Crime and Corporate Transparency Act 2023 – what does it mean for my company?
Legal Update
King’s Speech gives the green light for autonomous vehicles
Opinion
What’s lurking in your garden? The UK’s most dangerous and invasive plants
Opinion
Landowner fined £15,000 after public attacked by cows
Legal Update
The future of autonomous technology - August 2023
Legal Update
Polluters to face unlimited penalties under new legislation
Legal Update
Browne Jacobson grows Cardiff team with two new appointments
Legal Update
Higher-risk buildings – are you ready for 30 September 2023?
Opinion
New fraud offence to be introduced in the new Economic Crime and Corporate Transparency Bill
Legal Update
Government to expand network and information systems regulations
Opinion
New provisions for higher-risk residential buildings now in force
Legal Update
UK Government publishes the Online Safety Bill: an overview
Legal Update
Update on the Digital Services Act (“DSA”) – Important Dates and Deadlines Looming
Legal Update - Public matters newsletter
Public matters - January 2023
Press Release
Browne Jacobson advises Natural England on investigation of ‘first in its kind’ sentenced Devon farmer
Legal Update
Biodiversity Net Gain: positive for nature and an opportunity for landowners
Opinion
Logistics firm fined for multiple failings leading to asbestos exposure
Logistics company Eddie Stobart has been fined £133,000, after a series of failures which took place whilst excavation work was carried out, exposing its staff to asbestos.
Published Article - Consumer Duty
Consumer duty part 2 - 'The drill-down' into the 'cross-cutting' rules
Opinion
Directors fined for unsafe removal of asbestos
Two directors of a construction company were fined after failing to ensure the safe removal of asbestos from a plot of land. On 14 and 15 November 2021, Directors Anthony Sumner and Neil Brown, of Waterbarn Limited were involved in the uncontrolled removal of asbestos material from a plot of land in Grasscroft, Oldham.
Opinion
Don't look down
An engineering company in Tyne and Wear was fined £20,000 after a worker fractured his pelvis and suffered internal injuries after falling through a petrol station forecourt canopy, whilst he was replacing the guttering.