The Economic Crime (Anti-Money Laundering) Levy Regulations 2022

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make provision about the assessment, payment, collection and recovery of the economic crime (anti-money laundering) levy (“the levy”) which is charged in accordance with Part 3 of the Finance Act 2022 (c. 3) for the financial year beginning with April 2022 and subsequent financial years (see section 66 of the Finance Act 2022).

The appropriate collection authority is responsible for the collection and management of the levy. The appropriate collection authority is either the Financial Conduct Authority, the Gambling Commission or the HMRC Commissioners, as provided for in section 53(3) of the Finance Act 2022. Part 2 of this instrument makes provision as to which appropriate collection authority is to exercise functions relating to the levy where both the Gambling Commission and the Financial Conduct Authority are an appropriate collection authority in accordance with section 53(3).

Part 3 of this instrument makes provision about the assessment, payment, collection and recovery of the levy where the appropriate collection authority is the Financial Conduct Authority (“the FCA”). Regulation 5 provides for the FCA to require by notice any person for whom it is a supervisory authority (defined in section 65(1) of the Finance Act 2022) to make a return relating to the person’s UK revenue and makes provision as to the content of the return and date by which it must be returned. Regulation 6 makes provision for the payment of the levy and regulation 7 gives the FCA the power to charge interest in the event of late payment.

Part 4 of this instrument makes provision about the assessment, payment, collection and recovery of the levy where the appropriate collection authority is the Gambling Commission. Regulation 9 makes provision for those liable to pay the levy to notify the Gambling Commission, make a return and pay the levy on or before 30th September following the financial year for which the liability arises and makes further provision in relation to the content, form and manner of the notification and the return. Regulation 10 provides that the Gambling Commission may make a register with the notified information and make it publicly available. Regulation 11 makes provision for interest to be payable where any amount of levy is not paid by the due date.

Part 5 of this instrument makes provision about the assessment, payment and collection of the levy where the appropriate collection authority is the HMRC Commissioners. Regulation 13 provides that a person liable to pay the levy must make a return and pay the levy on or before 30th September following the financial year for which the liability arises and makes further provision in relation to the content, form and manner of the return. Regulation 14 makes provision as to amendment of the return.

Part 6 makes provision in relation to cases where an individual liable to pay the levy dies or becomes incapacitated or where a person (whether or not an individual) is subject to an insolvency procedure. Regulation 15(2) provides that those acting for such a person may be treated as the person liable to pay the levy and must satisfy the requirements of the Finance Act 2022 and these Regulations accordingly.

A Tax Information and Impact Note (TIIN) covering this instrument is available on the Government website at https://www.gov.uk/government/publications/economic-crime-anti-money-laundering-levy. It remains an accurate summary of the impacts that apply to this instrument.