It’s now understood that one ‘under the radar’ cost rise announced in the Budget will hit bigger agencies.

Currently agencies with UK revenues of £10.2m or more pay an Economic Crime Levy towards the cost of administering anti-money laundering checks and other financial security measures conducted by HMRC, the Financial Conduct Authority and the Gambling Commission.  

Under the changes, the current three bands of graduated payment will become four, with some companies as a result seeing a sharp rise in the levy they have to pay.

From April 1 next year, the former ‘Large’ band for the Economic Crime Levy, covering businesses with a revenue between £36 million and £1bn, is being split into two (£36 million – £500 million and £500 million – £1 billion). 

The charge for all bands will be set at 0.1% of revenue for businesses at the bottom of each band – so firms in Band A have to pay £10,200, Band B £36,000, Band C £500,000, and Band D £1m.

It’s been revealed that over the 2023/24 year – the latest data available – the real estate sector contributed £3.7m to the levy. This is expected to rise sharply with the new charges.

Tim Barnett, chief executive and anti-money laundering specialist at Credas Technologies, comments: “Back in April, we highlighted the significant financial strain the Economic Crime Levy was placing on estate agents and the wider real estate sector. Now, just seven months later, the government is increasing these costs further. For firms in the higher revenue bands, this represents a doubling of their levy obligations at a time when the sector is already navigating a challenging economic climate.”

The Economic Crime Levy was introduced to fund efforts against money laundering and economic crime, applying to firms in regulated sectors with annual UK revenue exceeding £10.2 million. However, Credas warns that rising regulatory costs must be matched with greater operational efficiency if firms are to remain sustainable.

“Rising levy costs make efficiency essential” Barnett adds. “Firms can’t keep absorbing higher compliance expenses without modernising how they operate. Digital verification tools offer a way to meet regulatory obligations more efficiently, reducing manual processes and human error while keeping costs under control. As regulatory costs continue to climb, investment in technology isn’t optional, it’s a necessity.”

Agencies with UK revenue of less than £10.2m a year are exempt from the levy.