An investigation by the Guardian has uncovered a series of financial dealings involving key figures from Reform UK, which have prompted bankers to alert the National Crime Agency (NCA) regarding possible money laundering activities.
The Guardian reported on Tuesday that a previously undisclosed donation of £5 million to Reform UK leader Nigel Farage, made by a cryptocurrency billionaire shortly before the upcoming 2024 general election, has been flagged to the NCA.
Additionally, it has come to light that banking personnel deemed the transfer of funds among Richard Tice, the party’s deputy leader, major donor Fiona Cottrell, and senior party member George Cottrell—who has a prior conviction for fraud—necessary for further scrutiny, according to sources within the financial sector.
Suspicious Activity Reports (SARs) filed by bankers have been forwarded to the NCA for further investigation.
Through legal representatives, Tice has threatened to pursue an injunction against the Guardian to prevent the publication of these revelations. He subsequently shared the allegations from the Guardian’s inquiries with the Telegraph, which reported on them without attribution prior to their release.
The findings stem from a Guardian investigation that drew insights from several finance professionals who have raised concerns regarding the financial operations of Reform UK.
Despite explanations regarding the origins and purposes of the funds provided by leading members of Reform UK, sources indicate that bankers still felt compelled to submit SARs.
According to the Guardian, at least four SARs have been filed concerning transactions linked to prominent individuals within Reform UK. One of these concerns a £1 million donation to Britain Means Business, a fundraising entity for Reform UK, made prior to the last general election. Half of this amount was subsequently transferred by Tice, in his capacity as a director, to the party itself. Originally known as Leave Means Leave, Britain Means Business was established to support Reform financially. Bank staff reportedly expressed doubt regarding the true origin of these funds, prompting the NCA to enlist the assistance of an international partner agency to trace the money’s source.
Two additional SARs pertain to a loan from George Cottrell to Tice, which occurred shortly before Tice made a property purchase and a donation to the party. This loan was not repaid until after these transactions were completed, sources indicate. George Cottrell is the son of Fiona Cottrell and is a former deputy treasurer of Ukip, having ties to Farage.
The fourth SAR involves the £5 million donation from Christopher Harborne, a businessman based in Thailand, to Farage, a detail first disclosed by the Guardian in April.
In various sectors, including accounting, banking, real estate, and law, professionals are legally required to submit SARs to the NCA if they suspect or have knowledge of money laundering activities. Regulations are in place to ensure that these reports contain sufficient detail for authorities to conduct thorough investigations.
SARs do not equate to criminal reports or evidence of misconduct; rather, they serve as indicators prompting law enforcement agencies to conduct deeper examinations and possible investigations.
The financial dealings surrounding Farage and Reform UK are currently under intense scrutiny from both political leaders and the public. Farage is being investigated by the parliamentary standards authority concerning the £5 million donation, which he has stated was intended for personal security and as a reward for facilitating Brexit. On Tuesday, he resigned from his Clacton seat, initiating a by-election in which he intends to run. Nonetheless, this action is expected to only temporarily halt the ongoing investigation and any resulting consequences.
Prime Minister Keir Starmer and Conservative leader Kemi Badenoch have led a bipartisan call for Farage to provide clarity regarding his financial dealings.
The filing of the SARs raises important questions about compliance with Electoral Commission regulations and the MPs’ code of conduct by Reform UK, as well as the adequacy of these regulations in light of allegations that the party has blurred lines between personal and political financing.
Sources who spoke with the Guardian indicated they did so out of a sense of public duty, believing the electorate deserves to know whether a significant political party is fully transparent about its financial dealings. They also expressed concerns that the involvement of bankers and law enforcement in investigating potential money laundering should be brought to light. Additionally, they warned that any NCA inquiry might extend for years due to the agency’s limited resources, potentially leaving it incomplete in time for the next general election, scheduled by July 2029.
Several individuals highlighted in the reports are recognized within the finance sector as politically exposed persons, meaning they are seen as having a higher risk of engaging in bribery, corruption, and other illegal activities. Consequently, they are subject to enhanced due diligence, resulting in closer scrutiny of their transactions and activities by financial institutions.
Enhanced due diligence does not automatically trigger SARs; these reports are only initiated in response to specific concerns regarding money laundering activities that warrant investigation by the NCA.
An NCA spokesperson stated, “The NCA does not confirm or deny the receipt of SARs, nor do we comment on how any SAR is utilized. SARs are confidential, and breaching that confidentiality…”
