UK Establishes New AML Investigative Cells Funded by Economic Crime Levy

Two of the UK’s leading state corporate entities will create new Anti-Money Laundering (AML) investigative "cells" using dedicated funds from the state’s newly implemented Economic Crime Levy. According to its annual report, Companies House, the government agency responsible for maintaining the UK’s register of companies, announced that £19 million will be allocated to both itself and the state Insolvency Service (INNS).

The INNS is tasked with multiple roles, including investigating the affairs of bankruptcies, companies in compulsory liquidation, and determining the causes of insolvencies.

“The government has made available multiple year funding of £19 million awarded via the Economic Crime Levy for new intelligence cells in Companies House and the Insolvency Service, allowing both agencies to plan to step up their Anti Money Laundering work,” the annual report stated.

The Economic Crime Levy aims to generate £100 million annually from financial institutions to fund various government initiatives aimed at combating money laundering. This levy was first imposed on regulated entities during the financial year from April 1, 2022, to March 31, 2023. Companies House reported that the initial payments were received in the following financial year, ending March 31, 2024.

In its annual report, Companies House noted it has been granted enhanced powers to fight money laundering due to the Economic Crime and Corporate Transparency Act 2023, approved last October.

“This has reformed the role and the powers of the Registrar of Companies House to tackle money laundering and other economic crime and improve transparency over corporate entities,” the report explained. “This has increased the scope of criminal offences and introduced a sanctions regime for non-compliance with the reforms.”

Funding mechanisms for AML measures in the UK have previously faced criticism from organizations such as Spotlight on Corruption, a UK-based anti-corruption charity. In March 2023, Spotlight on Corruption acknowledged that increasing funds to Companies House via the Economic Crime Levy was positive. However, they argued that the money “could easily be raised instead by increasing the Companies House registration fee from its current absurdly low level of £12.”

“This would help fund enforcement and implementation of the new powers Companies House will [get] in the Economic Crime and Corporate Transparency Bill as well as stem the flow of bogus companies,” the charity stated.

By fLEXI tEAM