FIN07 AML FCA

Do you understand the code above?  Levy AML questionnaires are being sent out by FCA…find out why

Economic Crime (Anti-Money Laundering) Levy

Not another FCA fee? …. no not really, as the FCA are not initiating it. The levy is a government driven levy that the various regulatory bodies involved with AML are gathering data for and may add to firms bills (Mainly HMRC and FCA). 

Who does it effect? – any firms regulated for anti-money laundering (AML) purposes under the Money Laundering, Terrorist Financing and Transfer of Funds Regulation 2017 that fit the bill as Medium to very large firm (Medium: 10-36 Million; Large: 36M to 1 Billion; Very large: +1 Billion)

Areas expected to fall under the levy:

• 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
• crypto asset exchange providers and custodian wallet providers

Small entities will be exempt, 

Medium entities will pay £10,000;

Large entities £36,000; 

Very large entities £250,000.

The levy will first be charged in the financial year running from 1 April 2022 to 31 March 2023 – so if your year end is prior to 30/3/2023 then you may need to get you skates on as the FCA will be looking for your total income for the current year, if you are after 31/3/2023 then they will be using 2022 data.

So, there is nothing to do for small firms? – Wrong. Just one thing. Another short Regdata return that looks to be as at 2/5/2023 whereby we may need your total income (including unregulated income) for the 2022-3 year if your year end is prior to the 1/4/2023 or 2021-2022 if it’s after (We should have this already but will confirm). This return will confirm total income and therefore firm size and the levy required.

Main source: Economic Crime (Anti-Money Laundering) Levy - GOV.UK (www.gov.uk) not many other Decent articles out there and think this covers it fairly well.

Alastair.frame@ifac.eu