Nigel Farage's £5m Gift Reported to UK Crime Agency Over Money Laundering Concerns as Reform Leader Faces New Scandal

London, United Kingdom – The £5 million gift to Nigel Farage by a cryptocurrency billionaire was reported to the National Crime Agency by bankers who were concerned it may have been laundered money, the Guardian can reveal, in a disclosure that will put further pressure on the Reform UK leader as he faces the biggest crisis of his political career.

Farage was given a deadline of 1pm on Tuesday to respond to the Guardian before it reported that bankers had contacted the NCA about the gift. He gave a video address at 2pm announcing he would force a byelection in his seat of Clacton-on-Sea – an attempt to shake off the deepening scandal over his finances that appeared to have backfired as the Conservatives, Labour, the Green party, Restore Britain, and the Lib Dems all announced they would not stand candidates in a contest described as a "media circus" and "vanity project".

The Guardian understands bankers raised a suspicious activity report (SAR) with the NCA on 16 May 2024 over the gift from Harborne. An SAR is not proof of wrongdoing, rather it is an invitation for the agency to examine the transaction to decide whether there are grounds to investigate it further. It is not the same as a crime report.

'Astonishing and Deeply Serious'

The revelation that a £5m gift to Nigel Farage by a cryptocurrency billionaire was reported to the National Crime Agency by bankers concerned it may have been laundered money has been described as "astonishing and deeply serious".

Responding to the Guardian story, Anna Turley, the chair of the Labour party, called on Farage to "come clean and cooperate" with the NCA. "This is an astonishing and deeply serious allegation. The circumstances surrounding Nigel Farage's secret £5m 'gift' absolutely stink. Farage is engulfed in a major sleaze scandal and his attempts to distract won't wash with the public," she said.

"The Reform leader must finally come clean. He should publicly commit to cooperating with the National Crime Agency, fess up to the parliamentary watchdog over his finances, and face the consequences."

PMQs: Lammy Faces Cleverly on Prisoner Releases

Meanwhile, Deputy Prime Minister David Lammy faced shadow housing secretary James Cleverly at PMQs, with Cleverly pressing Lammy on the government's "wrong and dangerous" early prisoner release schemes.

Cleverly asked if Lammy would apologise to the victims of rapists and paedophiles who are being released early as a result of Lammy's policy. Lammy started by attacking Cleverly's record in government, saying the Tories closed 23 prisons – which is why an early release scheme is needed.

Cleverly said 50,000 prisoners have been released early in two years under Labour, and accused Lammy of refusing to apologise to victims. He quoted a victim saying finding out her attacker is getting out early means she can barely sleep.

Lammy said the Tories had their own early release schemes, releasing 10,000 people early "on the sly". He said all MPs want to see offenders locked up, but for that to happen, the government needs prisoner places.

Farage's Financial Scandal Deepens

The disclosure of the £5m gift has led to the biggest crisis of Farage's political career. Since the Guardian first revealed in April that Farage had been given £5m by the Reform donor Christopher Harborne, Farage has given differing explanations over what the money was for, and insisted he had no obligation to disclose it because he was not a politician at the time.

However, the latest Guardian investigation will raise fresh questions over the gift. According to financial industry sources, Farage received at least some of the £5m after he had announced on 23 May 2024 that he was not going to stand for parliament, saying it was "not the right time for me". The balance of the £5m was received after he had ruled himself out, and shortly before he said he would run for the seat of Clacton in Essex.

In correspondence with the Guardian, Harborne's lawyers have claimed Farage received the money on 5 April 2024. They did not provide a substantive response to detailed questions on the gift and a SAR to the NCA.

The Suspicious Activity Report

Banks pay particular attention to the transactions involving so-called "politically exposed persons" because they are deemed to be at greater risk of bribery, corruption, or other criminality. Harborne's involvement with cryptocurrencies also makes him higher risk in banking terms, as it is harder to track the wealth of individuals who transfer sums in and out of cryptocurrencies.

In this case, the Guardian understands bankers raised a suspicious activity report (SAR) over the gift on 16 May 2024 with the NCA. An SAR is not proof of wrongdoing – rather it is an invitation for the agency to examine the transaction to decide whether there are grounds to investigate it further. It is not the same as a crime report.

Farage did not notify the parliamentary authorities about the gift, but came to the notice of bankers, who were not satisfied they could trace the ultimate origin of the funds.

Farage's Explanations: Security, Brexit, or 'Nobody's Business'

When asked about the gift, Farage has given a variety of explanations about what it was intended to be used for. Initially he said the money was given to pay for his security, then he described it as a reward for campaigning for Brexit. In sometimes tetchy exchanges with reporters, he has since said it was "nobody's business" what he did with the money, and that he could spend it on Ferrari sports cars if he wanted to.

In April, Harborne said in an interview with the Telegraph that the money was "to support Nigel's security not just now, but for the rest of his life". He added that at the time he made the gift "I never thought he would go back into politics".

Farage has consistently denied any wrongdoing. In a letter to the Guardian he said: "I have no reason to doubt the ultimate source of the money."

Polling: Only 12% Think Farage Has Been Honest

Only 12% of people think Farage has been honest about his financial affairs, according to a recent poll, suggesting the scandal is taking a significant toll on his reputation among the public.

Reform's deputy leader, Richard Tice, has accused the NCA of leaking his financial information to the Guardian. "You know, I've got the National Crime Agency who have leaked to the Guardian copies of my company bank statements, individual bank transfers, private conversations between my bankers and myself," he told Times Radio. "We've literally got criminality going on at the most senior crime agency in the land."

What's Next for Farage

If Farage is reelected in Clacton, he is still likely to face the parliamentary investigation and any reprimand that might follow. The standards commissioner is awaiting a decision over whether his failure to declare the money breached parliamentary rules.

Meanwhile, all of the other main parties have said they will boycott the byelection contest, leaving Farage to face Count Binface – a satirical candidate – in what has been described as a "media circus" and "vanity project".

As Anna Turley put it: "He should publicly commit to cooperating with the National Crime Agency, fess up to the parliamentary watchdog over his finances, and face the consequences."