Thread by @Turloughc

A thread on Richard Tice's Tantrum about the Reform Party bank account being closed. One of his claims was that it was because of Politically Exposed Persons. He might actually be right you know....

https://t.co/GWcsuxfcWYtelegraph.co.uk/politics/2021/…

I've identified potential serious red flag issues that may have affected Metro Bank’s ability to continue to offer its services to the renamed Brexit Party. /1

A major deficit of £1.6m recorded in the Party’s 2019-2020 accounts was not covered by supporters as claimed by the Party, but appears to be largely covered by entities controlled by Party Leader Richard Tice himself. /2

Under The Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, enhanced due diligence against money laundering is required to occur with entities connected to Politically Exposed Persons like Nigel Farage and current Reform Party leader Richard Tice /3

The party treasurer’s report in November 2020 claimed their huge deficit was “reversed” in the intervening period since 31 December 2020 by the “continuous enthusiasm and generous donations” by their “supporters”. /4

However, of the £2.385 million that was paid in donations and loans in early 2020, £1.4 million was either donated by Richard Tice's ‘Leave Means Leave’ or loaned to the Party through a company called ‘Tisun Investments Ltd’ that he ultimately owns. /5

The source of the deficit appears to be a massive £7.7m expenses total that is not itemized and appears under the heading “Other Expenses”. Accounts state they are compliant with Financial Reporting Standard 102 and accounting requirements under PPERA (electoral law) /6

However, both of these codes appear to require individual items of expenses to be both listed and costed especially if they are significant amounts. It is not clear why the expenses contributing to the “Other expenses” total are not listed or itemized as required. /7

Other monies passing through the account to address this deficit (£440k) appear to be supplied by Christopher Harborne whose accumulated £10m of donations to The Brexit Party was the largest in Brexit history /8

The fact that Mr Harborne had a second legal identity called (Chakrit Sakunkrit) was not widely known until his name appeared in the FinCen files leak for suspicious transactions in 2020. Mr Harborne holds a British passport in that name, and a Thai one as Mr Sakunkrit. /9

Other information in the public domain concerns the circa £5m in small donations received via Paypal during the 2019 European Parliament elections that would have flowed through this bank account. This was the basis for the #Manofthepaypal scandal /12

As well as its EDD requirements with PEPs, the bank is required to carry out EDD on transactions that may include anonymity, and new delivery mechanisms (like a political party amassing large donation totals via processing vast amounts of small payments) /13

Although the Brexit Party are required to give accurate information to the electoral commission they told them they had systems in place to record permissibility for these donors, a claim apparently contradicted by the electoral commission after these systems were inspected. /14

Incredibly, 10% of the number of all impermissible donations recorded in the UK over the last decade, happened within 6 days of the Party being instructed to record these donors’ addresses. Information from the Electoral Commission would have to be considered during EDD. /15

Under EDD, banks are required to consider the reputation of the client or beneficial owner in a PEP relationship. The client is not a Political Party but a company called ‘Reform UK Party Limited’. /16

The person of significant control of the company is former party leader Nigel Farage. For most of this time Farage as party leader could not be fired (by the Party Constitution) and was thus leader for life of the Party /17

Mr Farage’s reputation particularly around political finances is extremely troubling. Political parties and organizations he has led such as UKIP, The EFDD (European Parliament grouping), The campaign have all been embroiled in financial scandals. /18Leave.EU

According to ‘Private Eye’, Brexit/Reform Party were subsequently refused the right to form a new party by the Electoral Commission over funding structure issues. Banks are required to take such maters on board when assessing risk of continuing a relationship with the Party /19

Four banks refused the Brexit Party before Metro Bank took them on. ALL OF THE ABOVE happened since that decision. Consider that Metro Bank were embroiled in a scandal in 2019 themselves. More pressure now to follow these regulations. Clown Party had to go /20

Here we have a company called 'The Brexit Party' changing it's name to 'The Reform Party LIMITED'.

And another company called 'Reform UK Party' that changed it's name to 'The Brexit Party Limited'

The bank account would be for the former, but what's going on here? /21

It is likely 'The Reform Party' had their bank closed due to concerns their bank had under Money Laundering legislation.

At least people have some fact based opinion to counteract the posturing and nonsense /22

Looks like neirger Farage nor Tice have the ability to set up a new Party or hold a bank account for the existing one. A definitive end for UK Political Party involvement for Farage and Tice? Looks like it... /ends

Neither*

British*

".....difficulty for banks of being involved with politically exposed persons and political parties."

“It’s not like we’re extremist zealots."

Mr Tice suggests it's the "Terrorist" part of The Money Laundering, Terrorist Financing Act in play. /PS1

telegraph.co.uk/politics/2021/…

Financial Institutions must perform Enhanced Due Diligence on all such accounts. It's preventative and doesn't imply guilt (the FCA is clear on that). If a bank was to take action including closing an account: that action would be based on risk not guilt. Fair to state.

Should have said earlier: H/T to the brilliant
@mopeng for help and feedback on the research.

WSJ has revealed that a Hamas brigade, a designated terrorist organization, laundered $80 million through a scheme that allowed Crypto giant Tether/Bitfinex avoid banking blocks via accounts that hid Tethers involvement. How was Harborne involved?

https://t.co/vlCHYFcrEIwsj.com/articles/crypt…

Tether executives tried to also expand their bank access with an account at New York’s Signature Bank. Signature had closed two accounts tied to the companies earlier that year and rejected another attempt by Bitfinex.

Signature bankers were then introduced to a company called AML Global, an aviation fuel broker looking to open an account. The account would be controlled by Christopher Harborne who owns AML Global.

The application didn’t say that Mr. Harborne owned roughly 12% of Tether/Bitfinex under another name, Chakrit Sakunkrit. The Sakunkrit name was a name the bank felt was trying to evade anti-money-laundering controls when the companies’ earlier accounts were closed.

The account was not supposed to be trading with tether/bitfinex but red flags were raised when it was getting huge inflows from what appeared to them as Bitfinex. The account was soon closed.

Seperately it was revealed that in early 2019 Tether issued Mr Harborne more than $70 million in tether under his Thai name. https://t.co/zDOrksnl6Jprotos.com/tether-papers-…

Implications to follow later: but perhaps Tice's tantrum accusing Metro Bank of believing that Reform UK were 'zealots' (perhaps under The Money Laundering and Terrorist Financing) was closer to the truth given the WSJ revelations on tether money.