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Economic crime levy: technical consultation

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The government is now holding a technical consultation on the draft legislation for the economic crime levy ahead of its inclusion in the Finance Bill 2021/22, to ensure the legislation operates as intended. The consultation will run until 15 October 2021. A policy paper has been published alongside the draft legislation.

The government intends for the first set of levy payments to be made in 2022/23. However, this is subject to the findings of this policy consultation and the time needed to develop the necessary collection infrastructure and go through the legislative process.

Anti-money laundering (AML) regulated entities with over £10.2m in UK revenue will be liable to pay the levy. Entities will pay higher fees the larger their size. It will be collected by the three public sector AML statutory supervisors: the Financial Conduct Authority, HMRC, and the Gambling Commission.

The government will undertake a review of the levy by the end of 2027. This would seek to take place after around three years of operation and may consider matters such as whether the levy is meeting its original policy objectives, should continue, should remain based on just the AML-regulated sector, and is still being calculated and collected appropriately.

The government held a consultation on the design and enforcement of the levy from July to October 2020. There were 119 responses to the consultation from across industry, with many agreeing that an enhanced response to economic crime is needed and a levy could represent a core part of sustainably resourcing this. However, some respondents had reservations about a new levy, in part because the relevant sectors had been affected by changes in the economics circumstances resulting from the pandemic. See

Issue: 1547
Categories: News