The UK's National Crime Agency (NCA) on Thursday opened a criminal inquiry into key groups and leaders behind the pro-Brexit campaign in the 2016 European Union (EU) referendum.
Arron Banks, a businessman and political donor who had bankrolled the 'Leave' campaign in the lead up to the referendum, was referred to the NCA by the UK's Electoral Commission alongside fellow pro-Brexit campaigner Elizabeth Bilney and the Leave.EU and Better for the Country (BFTC) groups.
The commission said it suspected that money donated to pro-Brexit campaign groups may have come from sources that are not permitted within electoral rules of the country.
"We have reasonable grounds to suspect money given to Better for the Country came from impermissible sources and that Mr Banks and Ms Bilney, the responsible person for Leave.EU, knowingly concealed the true circumstances under which this money was provided," said Bob Posner, the Electoral Commission's legal chief.
"This is significant because at least 2.9 million pounds of this money was used to fund referendum spending and donations during the regulated period of the EU referendum. Our investigation has unveiled evidence that suggests criminal offences have been committed which fall beyond the remit of the Commission," he said.
The NCA said that while electoral law offences would not routinely fall within its remit, the nature of the necessary inquiries, and the potential for offences to have been committed other than under electoral law, lead the agency to consider an investigation appropriate.
"Our investigation relates to suspected electoral law offences covered by that referral, as well as any associated offences. This is now a live investigation, and we are unable to discuss any operational detail," an NCA statement said.
Banks, who was the co-founder of Leave.EU, has denied any wrongdoing and said he welcomed the investigation to put an end to the "ludicrous" allegations.
"There is no evidence of any wrongdoing from the companies I own. I am a UK taxpayer and I have never received any foreign donations. The Electoral Commission has produced no evidence to the contrary," he said.
The controversial businessman also claimed the Electoral Commission had acted "under intense political pressure from anti-Brexit supporters".
Leave.EU was set up as a separate campaign group over and above the official 'Vote Leave' organisation in the lead up to the 2016 referendum.
Under UK law, loans and donations to registered campaigners can only come from permissible sources, which excludes overseas or foreign funding.
The 'Leave' campaign emerged victorious in the referendum, when Britain voted 51.9 per cent to 48.1 per cent in favour of Brexit. The UK has since been negotiating its formal exit from the European economic bloc, with a departure date set for March 29 next year.
With just five months left to secure a deal for Britain's future relationship with the EU, there is growing anxiety in political and business quarters over the continued uncertainty.
Prime Minister Theresa May's chief Europe adviser, Oliver Robbins, is continuing negotiations in Brussels with the hope to conclude talks by the end of this month.
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