ECL01200 - Introduction: background

The Economic Crime (Anti-Money Laundering) Levy (“ECL”) was introduced as part of Autumn Budget 2021 and is part of the government’s wider objective, outlined in the 2019 Economic Crime Plan, to develop a long-term sustainable resourcing model to tackle economic crime.

As one part of this sustainable resourcing model, and supported by ongoing government funding, the levy will aim to raise £100 million per year from the Money Laundering Regulated (MLR) sector to pay for government initiatives outlined in the Economic Crime Plan to help tackle money laundering.

The government believes it is fair and proportionate that as the sector most exposed to money laundering risk, the MLR sector should be the principal contributor to the reform initiatives that will benefit them and help make the UK a safer place for them to do business. ECL is expected to impact on an estimated 4,000 businesses.

Law and regulations

The ECL legislation is contained in:

The Economic Crime (Anti-Money Laundering) Levy Regulations 2022 (legislation.gov.uk)

The Economic Crime (Anti-Money Laundering) Levy (Amendment) Regulations 2023 (legislation.gov.uk)

Relevant public notices

HMRC issues notices giving guidance on ECL.

Aim of this guidance

The aim of this guidance is to help HMRC staff to understand the ECL and how it applies to customers.

This guidance is intended to be comprehensive in scope.