Summary
- Bankers have alerted the UK's National Crime Agency about a £5 million ($6.7 million) gift made to Nigel Farage by cryptocurrency millionaire Christopher Harborne, as reported by the Guardian.
- This suspicious activity report (SAR) was submitted in May 2024, indicating that the bankers were unable to verify the source of the funds; however, such a report does not imply any wrongdoing.
- The report comes as an investigation is underway to determine whether Farage was required to declare the gift, which he claims he was not obligated to disclose.
The Guardian has revealed that Nigel Farage's £5 million gift from crypto billionaire Christopher Harborne has been flagged to the UK's National Crime Agency by bankers.
According to the Guardian, the bankers filed the suspicious activity report (SAR) on May 16, 2024, citing their inability to trace the ultimate source of the funds. It is important to note that a SAR does not equate to a report of criminal activity; instead, it serves as a signal for the agency to investigate a transaction further.
Christopher Harborne, a businessman based in Thailand, holds a 12% stake in Tether and ranks sixth on the Sunday Times Rich List. He has also contributed millions to Reform UK.
Transactions involving "politically exposed persons" are subject to heightened scrutiny due to increased risks of bribery or corruption. The FCA guidance emphasizes a risk-based approach to assessing money laundering risks for such individuals. The Guardian reported that Harborne's cryptocurrency investments heighten the risk for banks, as tracing money through cryptocurrencies can be challenging.
Farage expressed to the paper that he was unaware of the SAR and stated he had "no reason to doubt the ultimate source of the money." He claimed the information was “illegally obtained” by the newspaper and denied any knowledge of discussions with the NCA regarding his transactions.
The NCA has not confirmed or denied the receipt of any SAR, citing confidentiality rules that prevent them from discussing such reports to avoid a potential "tipping off" offense under the Proceeds of Crime Act.
Farage has been contacted for his comments.
The Timing of the Gift
According to Harborne's legal team, Farage received the funds on April 5, 2024. However, sources within the financial sector mentioned to the Guardian that a portion of the £5 million may have arrived after May 23, 2024, the date Farage announced he would not participate in that year's general election, stating it was "not the right time for me." Shortly after, he changed his mind and decided to run in Clacton.
This timeline appears to contradict claims made in a recent book titled "The Farage Factor" by Conservative peer Michael Ashcroft, which suggests that Reform was preparing for Farage's candidacy by mid-May, having enlisted a GB News producer to assist with a promotional event for his announcement.
Farage has characterized the money as an "unconditional gift" and has provided various explanations for its purpose, including funding for security, a reward for his Brexit efforts, and stating that it was "nobody's business," implying he could spend it on luxury items like Ferraris if he chose.
Farage's Compounding Issues
Farage has claimed he was not required to declare the gift since he was not a politician at the time of receipt. The Guardian reports he became a "person of significant control" within Reform's corporate structure on May 1, 2024, and served as the party's honorary president from March 2021 until June 2024.
Parliament's standards commissioner is currently investigating whether Farage's failure to declare this financial gift violated its regulations, while Labour has accused him of avoiding scrutiny regarding the matter.
Just hours before the Guardian's report, Farage indicated he would force a byelection in his Clacton constituency. However, this move seemed to backfire as the Conservatives, Labour, the Greens, the Liberal Democrats, and Restore Britain all stated they would not put forward candidates, dismissing the election as a "circus."
If re-elected, Farage would still be subject to the standards investigation and any subsequent penalties that may arise.
Additionally, Farage is facing calls for an inquiry into his "failure to declare financial support" from George Cottrell, a convicted fraudster linked to an offshore cryptocurrency casino. Farage has denied that these benefits needed to be disclosed, while Cottrell claims he did not expect any favors in return.