Britain on Monday (July 6th) tightened its rules on political donations from abroad as part of efforts to prevent foreign money from influencing elections and amid growing concerns about what Housing Minister Steve Reid described as "suspicious funding".

Last year, the government ordered a review into foreign money interference in political affairs after a former Reform Party politician was sentenced to prison for accepting bribes in exchange for pro-Russian speeches and statements.

The review concluded that Britain faces an ongoing problem of attempts by foreign countries, including Russia, China and Iran, to influence and undermine the country's democracy, prompting the government to implement the new rules.

'Donation' scandal hits British Reform leader

The rules come as the leader of the anti-immigration Reform party, Nigel Farage, is under investigation by the parliamentary standards watchdog over whether he should announce a £5 million ($6.68 million) donation from a Thailand-based crypto billionaire, which was made before Farage announced his candidacy for parliament.

The Department for Housing, Communities and Local Government said political candidates would henceforth be required to declare donations worth more than £2,230 that they received prior to their candidacy, and to prove that any funding they received prior to running came from legitimate sources.

"By imposing stricter standards on foreign donors and requiring candidates to prove their source of funding, we are taking world-leading measures to protect the integrity of our elections and address the threats we face from abroad," Reid said in a statement.

Donations capped at £100,000 per year

Stricter rules also mean that individuals moving to the UK from overseas now have to permanently reside in the UK for a year before they can make a political donation of £100,000 or more, while corporate donations will be assessed on the basis of past profits after taxes rather than revenue, helping to ensure that only UK-linked and co-legalised businesses can donate.

The rules build on those announced in March, which capped donations from Britons living abroad at £100,000 a year, and imposed a ban on cryptocurrency donations until a system is established to regulate them effectively.

Farage's Reform Party, which has topped local polls for more than a year, said no rules had been broken regarding the donation Farage received from crypto investor Christopher Harborn, who provided about two-thirds of the party's funding last year, according to Electoral Commission data.

Farage was referred to parliament's standards watchdog on Sunday following a report that he had not declared some other benefits.