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Brexit Party 'at high risk' of accepting illegal donations Brexit Party 'at high risk' of accepting illegal donations
(about 1 hour later)
The way The Brexit Party collects money from supporters leaves it open "to a high risk of receiving and accepting impermissible donations", the Electoral Commission has warned. The way The Brexit Party collects money from supporters creates "a high risk of it accepting impermissible donations", the Electoral Commission has said.
The watchdog, which visited the party's headquarters last month, said it had made recommendations to help it meet its "legal responsibilities". During the European elections, the party was accused of getting around declaration rules by accepting multiple sums online below the £500 limit.
If it did not comply, the regulator said it could take enforcement action. The watchdog said it had made the party aware of its "legal responsibilities".
Party leader Nigel Farage has insisted all its donations are above board. The party said it had not infringed any rules, but would "embrace" the recommendations on checking donors.
Under UK law, donations of £500 or above must be made by a "permissible donor" - someone who is listed on the electoral register or a company registered in the UK.Under UK law, donations of £500 or above must be made by a "permissible donor" - someone who is listed on the electoral register or a company registered in the UK.
Amounts below that do not have to be declared, but some critics - among them ex-PM Gordon Brown - have said there is no way of telling whether those smaller amounts come from British or foreign sources, and therefore the system may be being abused.Amounts below that do not have to be declared, but some critics - among them ex-PM Gordon Brown - have said there is no way of telling whether those smaller amounts come from British or foreign sources, and therefore the system may be being abused.
The Brexit Party topped the polls at last month's European elections.The Brexit Party topped the polls at last month's European elections.
During the campaign, it said donations of £25 or less had accounted for 90% of its total funding. It raised more than £2m from small donors, thousands of whom paid £25 each to become registered supporters.During the campaign, it said donations of £25 or less had accounted for 90% of its total funding. It raised more than £2m from small donors, thousands of whom paid £25 each to become registered supporters.
But Mr Brown suggested the party was getting round the declaration rules by accepting multiple "untraceable" donations directly online.But Mr Brown suggested the party was getting round the declaration rules by accepting multiple "untraceable" donations directly online.
Political parties have 30 days to return donations if they are unsure of their origin.Political parties have 30 days to return donations if they are unsure of their origin.
To date, the Brexit Party has handed back one donation, of £1,000, as the party could not identify whether it was from a permissible source.To date, the Brexit Party has handed back one donation, of £1,000, as the party could not identify whether it was from a permissible source.
'Robust measures''Robust measures'
The Electoral Commission said it was "legitimate" for any political party to adopt a fundraising strategy focused on raising small sums through online payment systems, including PayPal.The Electoral Commission said it was "legitimate" for any political party to adopt a fundraising strategy focused on raising small sums through online payment systems, including PayPal.
But it said there was a legal duty on parties to check every payment they obtained online to ascertain the source of the donation and "not to accept any that they are not entitled to".But it said there was a legal duty on parties to check every payment they obtained online to ascertain the source of the donation and "not to accept any that they are not entitled to".
Parties should request "as much information as possible" to ensure all money was from a permissible source, it said.Parties should request "as much information as possible" to ensure all money was from a permissible source, it said.
In a statement, it said it had concluded that the "fundraising structure adopted by the party leaves it open to a high and ongoing risk of receiving and accepting impermissible donations".In a statement, it said it had concluded that the "fundraising structure adopted by the party leaves it open to a high and ongoing risk of receiving and accepting impermissible donations".
The watchdog's director of regulation, Louise Edwards, said it had made "specific recommendations to the party that will support it to meet its legal responsibilities when it comes to receiving funds".The watchdog's director of regulation, Louise Edwards, said it had made "specific recommendations to the party that will support it to meet its legal responsibilities when it comes to receiving funds".
"Should it fail to meet those responsibilities, this will be considered in line with our enforcement policy," she added."Should it fail to meet those responsibilities, this will be considered in line with our enforcement policy," she added.
Asked about the issue during the campaign, Mr Farage said the party's website "says very clearly, do not donate unless you are on the electoral roll or eligible to vote". 'Same rigour'
In response, the party said the watchdog's recommendations were "helpful" and it would embrace them "as soon as practicable and possible".
"They haven't found any examples of infringement of Electoral Commission rules," a spokesman said. "We trust that the Electoral Commission have been applying the same oversight and rigour to the other political parties and their fundraising."
During the campaign, the party insisted all of its donations were above board and it had made clear on its website that people should not attempt to give money unless they were on the electoral roll or eligible to vote.
Both the Labour and Conservative parties also have the option to donate via PayPal on their websites.Both the Labour and Conservative parties also have the option to donate via PayPal on their websites.
The Electoral Commission will, in August, publish details of larger donations, of £7,500 and over, given to The Brexit Party and other parties during the election campaign.The Electoral Commission will, in August, publish details of larger donations, of £7,500 and over, given to The Brexit Party and other parties during the election campaign.