UK Tightens Rules on Overseas Political Donations to Curb Foreign Influence

LONDON: The British government has introduced tougher regulations on overseas political donations as part of a broader effort to prevent foreign financial influence in elections and strengthen transparency in political funding.

The new measures, announced on Monday, require political candidates to declare donations exceeding £2,230 received before they officially become candidates and provide evidence that such contributions are from legitimate sources. In addition, individuals will be required to have lived in the United Kingdom for at least one year before making political donations exceeding £100,000.

The reforms also tighten scrutiny of corporate donations by assessing whether companies can make political contributions based on their post-tax profits rather than their revenue, a move intended to prevent shell companies from being used to channel funds into politics.

The changes build on earlier recommendations accepted by the government in March, including a cap on large donations from Britons living overseas and a temporary ban on cryptocurrency donations until an effective regulatory framework is established.

The government commissioned a review into foreign financial interference after concerns over attempts by hostile states, including Russia, China and Iran, to influence British politics, as well as following the conviction of a former Reform UK politician for accepting bribes to promote pro-Russian views.

The latest announcement also comes amid heightened scrutiny of Reform UK leader Nigel Farage’s funding arrangements, although the government has said the new rules are designed to strengthen the integrity of the electoral system rather than target any individual or political party.