Payments to Reform UK first revealed by the Guardian are now being investigated by the Metropolitan police.
The inquiry is scrutinising payments made to the party via a company controlled by its deputy leader, Richard Tice.
Scotland Yard is looking at two donations of £250,000 made to the party by Britain Means Business in the weeks before the 2024 general election.
The Guardian revealed earlier this month that Fiona Cottrell made a £1m transfer to Britain Means Business shortly before the donations were made. About half of the funds were then passed to the party.
Cottrell’s son, George, is a convicted fraudster with close links to Reform’s leader, Nigel Farage.
The Guardian reported earlier this month that Fiona and George Cottrell have been interviewed under criminal caution as part of the police investigation.
In response to a query about the investigation from the BBC, Tice said: “This is the first I have heard of it – if true why are the Met police briefing the BBC before contacting interested parties?
“Is the Met leadership now engaged in the widespread politically motivated smear campaign against Reform and its leaders?”
Fiona Cottrell also made two donations directly to the party, each worth £250,000, in May 2024. These are also within the scope of the Metropolitan police investigation.
Tice, who was elected to parliament after the poll, is the sole director of Britain Means Business.
He has previously confirmed that his company received donations from Fiona Cottrell but described reports about the money as a “politically motivated smear campaign”.
The Guardian told how the transfer from Fiona Cottrell to Britain Means Business was reported to the National Crime Agency by bankers via a suspicious activity report.
Suspicious activity reports are not crime reports but exist to identify potential incidents of money laundering.
The Guardian understands that neither the NCA nor bankers have been able to trace the source of the original £1m sent by Fiona Cottrell to Tice’s company. The NCA is seeking help from a foreign partner in its attempts to understand where the money originated.
A Reform UK spokesperson said: “Reform takes pride in its stringent vetting of donations and always ensures that the Electoral Commission guidelines on donations, as set out in the Political Parties, Elections and Referendums Act 2000, are strictly followed, as has been the case with donations so far.”
Fiona Cottrell did not respond to the Guardian’s attempts to contact her about the donations to Britain Means Business.
When asked about the developments by the BBC on Saturday evening, the Metropolitan police repeated a statement issued earlier this month.
“An investigation was launched in February 2025 after a referral was made to the Metropolitan police by the Electoral Commission relating to donations made to a political party ahead of the 2024 UK general election,” the force said.
“Detectives from the Met’s special enquiry team are investigating alleged offences under section 61 of the Political Parties, Elections and Referendums Act 2000.
“Early investigative advice has been sought from the Crown Prosecution Service and two people have so far been interviewed under caution. No arrests have been made.
“An offence under this section is not one that the Electoral Commission can investigate and, as such, it is a matter for the police.”
