FCA authorised firms and other persons within the ‘regulated sector’ for AML purposes may be subject to an economic crime levy as from 2022/23.
The Government has approved in principle the introduction of an economic crime levy (Levy) in 2022/23, according to the Chancellor of the Exchequer in his March 2020 Budget. The intention is that the Levy will be raised on all firms within the ‘regulated sector’ as defined in the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MRLs).
This will include firms authorised by the Financial Conduct Authority (FCA) and Prudential Regulation Authority as well as crypto-asset exchanges, crypto-asset wallet providers and many professional services firms.
The Levy is to provide part of the funding required for the Government’s Economic Crime Plan (ECP), published in July 2019.
The proposals will potentially affect the vast majority of FCA authorised firms.