The government is establishing an Economic Crime (Anti-Money Laundering) Levy.
This new levy will first be charged on entities that are regulated during the financial year from 1st April 2022 to 31st March 2023, the amount payable determined their size based on UK revenue from periods of account ending that year.
Amounts will be payable following the end of each financial year, so the first payments will be made in the financial year from 1st April 2023 to 31st March 2024 – paid as a fixed fee based on the size band an AML-regulated entity falls into based on their UK revenue.
There will be four size bands:
- small (under £10.2m UK revenue)
- medium (£10.2m – £36m)
- large (£36m – £1bn)
- very large (over £1bn)
All small entities will be exempt, whilst: medium entities are expected to pay a fixed fee in the region of £5k to £15k; large entities a fee in the region of £30k to £50k; very large entities a fee in the region of £150k to £250k. Final fixed fees will be set out in the final legislation in the Finance Bill.
The sectors impacted are:
- credit institutions
- financial institutions
- auditors, insolvency practitioners, external accountants and tax advisers
- independent legal professionals
- trust or company service providers
- estate agents and letting agents
- high value dealers, casinos, auction platforms and art market participants
- cryptoasset exchange providers and custodian wallet providers
Any impact on payroll services?
Some payroll service are considered to fall into AML supervision obligations where they are considered to be Accountancy Service Providers and where they provide Tax Advice.
For full details of the policy see: