In a bid to increase funding to tackle economic crime and money laundering, the government plans to introduce an economic crime levy, payable by businesses and partnerships
The government has set out the draft legislation for a new levy on the anti-money laundering (AML) regulated sector – the economic crime (anti-money laundering) levy, or ECL, which will affect around 20,000 medium to large firms and financial institutions. The smallest businesses will be exempt from the levy although the government will review the policy after three years to ensure it is raising the revenue required and working effectively.
AML-regulated entities with over £10.2m in UK revenue will be liable to pay the levy, which will be payable from 1 April 2023, covering financial year 2022-23, and is expected to raise £100m to help fund AML reforms and tackle economic crime.
The new levy will affect larger accountancy firms, who have fee income above the exemption limit of £10.2m in UK revenue and sales.
