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

[F1 PART 9 U.K. Enforcement

Textual Amendments

F1 Pts. 7-10 inserted (with effect in relation to the financial year beginning with April 2022 and subsequent financial years) by The Economic Crime (Anti-Money Laundering) Levy (Amendment) Regulations 2023 (S.I. 2023/369), regs. 1(2), 11

Financial penalties U.K.

20.— (1) An appropriate collection authority may impose a financial penalty on a person liable to pay the levy where that person fails to—

(a) submit an economic crime (anti-money laundering) levy return by—

(i) where the appropriate collection authority is the Gambling Commission or the HMRC Commissioners, the due date, or

(ii) where the appropriate collection authority is the Financial Conduct Authority, the FCA return date;

(b) pay the levy by the due date;

(c) make a complete and accurate economic crime (anti-money laundering) levy return such that a lower amount of levy has been charged for a financial year than the amount determined in accordance with section 54 of the Act;

(d) notify the appropriate collection authority in writing of an under-assessment of the levy;

(e) notify the appropriate collection authority in writing that an amount of levy, which could include an amount of repayment interest, has been repaid that ought not to have been repaid;

(f) comply with a request for information or documents under regulation 16;

(g) comply with record keeping requirements under regulation 17;

(h) submit the economic crime (anti-money laundering) levy return by the date which is 3 months after the due date or the FCA return date, following a failure under sub-paragraph (a);

(i) pay the levy by the date which is 30 days after the due date, following a failure under sub-paragraph (b);

(j) comply with a request for information or documents under regulation 16 by the date which is 3 months after the end of the period for compliance given in the request, following a failure under sub-paragraph (f);

(k) pay the levy by the date which is 3 months after the due date, following a failure under sub-paragraph (i).

(2) A financial penalty may be imposed under this regulation in respect of each and every failure mentioned in paragraph (1).

(3) But an appropriate collection authority may not impose a financial penalty where—

(a) the person liable to pay the levy satisfies the appropriate collection authority that they had a reasonable excuse for the failure;

(b) in the case of a failure referred to in paragraph (1)(g), the appropriate collection authority is satisfied that any facts which the appropriate collection authority reasonably required to be proved, and which would have been proved by the records, are proved by other documentary evidence supplied to the appropriate collection authority.

(4) Where a person had a reasonable excuse for a failure but the excuse has ceased, that person is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.

Amount of financial penalty U.K.

21.   In the Schedule, in the table—

(a) column 1 states the provision in regulation 20 under which a penalty may be imposed, and

(b) the amount of the penalty which may be imposed is the amount specified in or determined in accordance with the corresponding entry in column 2.

Penalty notices U.K.

22.— (1) Where an appropriate collection authority decides to impose a financial penalty under regulation 20, the appropriate collection authority must give a notice imposing the penalty (“a penalty notice”).

(2) A penalty notice must include—

(a) the amount of the financial penalty;

(b) the period for payment of the penalty in accordance with regulation 24;

(c) information about the ability to request a review and—

(i) where the appropriate collection authority is the Financial Conduct Authority, the right to apply for judicial review;

(ii) where the appropriate collection authority is the Gambling Commission or the HMRC Commissioners, the right of appeal including the time limit within which the appeal must be brought to the tribunal(1).

(3) A penalty notice may be withdrawn by the appropriate collection authority at any time by giving notice in writing to the person to whom the penalty notice was given.

Time limit for imposing a penalty U.K.

23.   A penalty notice must be given within the period of 4 years beginning with the due date.

Payment of penalty U.K.

24.   A penalty imposed in accordance with regulation 20 must be paid by the date which is 30 days after the date of the penalty notice.

Recovery of unpaid amounts by the HMRC Commissioners U.K.

25.   Where an amount of unpaid levy, unpaid late payment interest or unpaid penalty is due to another appropriate collection authority, the HMRC Commissioners may, on request by that other appropriate collection authority, treat such amounts as if the HMRC Commissioners were the appropriate collection authority in respect of those amounts for the purposes of collection and recovery of those unpaid amounts.]

(1)

“The levy” means the economic crime (anti-money laundering) levy; see section 65(1) of the Act.