Prepare for the Economic Crime Levy

In view of the upcoming close of the first assessment year for the payment of the new Economic Crime Levy, the UK government has published a „Policy Paper“ entitled „Get ready for the Economic Crime Levy“. To recall, the levy was introduced via Statutory Instrument SI 2022/269, the „Economic Crime (Anti-Money Laundering) Levy Regulations 2022“ under the Finance Act 2022 and is placed on all anti-money laundering regulated businesses – including banks, building societies, investment firms, and others – to fund the fight against economic crime.
The document now provides guidance to firms as regards
– the need to register of affected firms (those whose UK revenues exceed £10.2 million per year) with their applicable collection authorities (HM Revenue and Customs (HMRC), the Financial Conduct Authority, or the Gambling Commission);
– the various collection processes depending upon the authority collecting the levy;
– the collection and registration process of the HMRC only;
– the submission of financial reports to the HMRC only upon which the levy will be based;
– the consideration of reduced or partial accounting periods (applicable to all firms);
– the revenue bands to determine the levy (applicable to all firms);
– payment modalities (applicable to all firms).
It shall be noted that firms registered with the FCA or the Gambling Commission shall NOT register with the HMRC and must follow the processes of those two regulators.