ECL11400 - Registering and reporting requirements

Legislation at Part 5 of The Economic Crime (Anti-Money Laundering) Levy Regulations 2022 requires a person whose ECL collection authority is HMRC to submit an ECL return and pay the ECL due by 30 September each year. To allow a person to submit their ECL return, they must first register with HMRC.

Registering is a relatively simple process that will link the annual ECL requirements with a person’s existing ‘Business Partner Record’ in HMRC systems. This will allow a taxpayer to see their ECL obligations alongside all their other tax obligations in one place.

A person only needs to register once for ECL. Once registered, they will need to submit an ECL return if they are liable and pay their ECL liability by 30 September each year.

This ECL return to HMRC must show:

• The length of their relevant accounting period.
• Their UK revenue for that accounting period.
• Whether they stopped or started MLR-regulated activity in the previous financial year.
• The ECL band and amount due.

Please note that while HMRC asks that entities which have registered with HMRC for the ECL continue to submit ECL returns to HMRC each year, there is no statutory requirement to do so if the person does not have an ECL liability to HMRC. This may be because the person does not meet the UK revenue bandings with an ECL liability, or they may be required to pay the ECL to the FCA or GC.