Economic crime (anti-money laundering) levy
Executive summary
- AAT understands and supports the desire to increase investment to combat economic crime and recognises that establishing a consistent, sustainable resource for anti-money laundering (AML) purposes in the UK is paramount. However, the proposed introduction of the levy as a means of achieving this is another financial burden on a sector already under strain. This proposal comes at a time when regulated businesses within the UK are in a state of flux and many are in crisis management, operating in considerable uncertainty.
- AAT believes anything other than a centralised, single public agency will prove inefficient and problematic. A model involving collection by AML supervisors would add disproportionate administrative burdens and costs on those bodies and risks a lack of consistency. A centralised, single public agency model would ensure greater compliance whilst providing clear accountability and consistency of the collection and enforcement of the levy.
- AAT understands that calculating the levy rate has demonstrated a challenge in ensuring it is proportionate and reflective of risk, while also being simple to calculate, predictable, and cost-effective to collect and administer. Whilst AAT agrees that revenue should be the basis of any levy model, there must be a clear risk-based structure that backs up any metrics used for calculating the levy rate.
Related consultation responses
Anti-money laundering supervision reform: duties, powers, and accountability consultation
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Improving the effectiveness of the Money Laundering Regulations
AAT supports the government’s drive to combat money laundering and terrorist financing and to ensure that UK businesses are appropriately supported.
Spring Budget 2024 representation
This representation ahead of the March 2024 Spring Budget sets out AAT’s policy position on tax, professional standards, support for SMEs and late payments.
