Reporting entities have been waiting for clarity on the AML/CFT levy, and the Department of Internal Affairs has now confirmed the key details. For many businesses, the levy represents a new line item in compliance budgets — and understanding how it works matters for planning ahead.
What has been confirmed
The Department of Internal Affairs has confirmed that the AML/CFT levy will apply to reporting entities from July 2027. The levy is tiered based on the size and type of reporting entity, with different rates for different sectors and financial thresholds. The levy is designed to fund supervisor operations and regulatory development.
How it affects different types of reporting entities
The levy impact varies significantly by sector and size. Larger financial institutions will pay higher absolute levies, but the per-transaction or per-customer cost may be lower than for smaller reporting entities. Businesses operating across multiple sectors (e.g., a law firm with real estate conveyancing and trust accounting) may face combined levy obligations.
What this means for compliance budgeting
The levy is a new, fixed compliance cost that businesses need to budget for from July 2027. For smaller reporting entities, the levy may represent a meaningful percentage of compliance spend. Understanding the tier your business falls into, and how it compares to your current AML/CFT programme costs, helps with realistic planning.
For reporting entities that want help reviewing their overall AML/CFT compliance costs and obligations — including the levy — Strategi can help put the full picture together and develop a pragmatic compliance strategy.
Contact us to review your AML/CFT compliance costs and obligations — including how the levy affects your business from July 2027.