United Kingdom tightened rules on political donations to curb foreign interference

The Government of the United Kingdom announced a broad package of reforms to aimed at preventing foreign money from influencing elections and reinforcing the transparency of the democratic system against threats of external interference.

The measures were presented as part of the official response to the independent report ''Rycroft Review'', commissioned to assess the risks of foreign financial interference in British politics. According to the Executive, the review concluded that the United Kingdom faces a persistent threat from countries like Russia, China, and Iran, which have attempted to undermine democratic institutions through various mechanisms of influence.

The Secretary of State for Housing, Communities and Local Government, Steve Reed, stated that the new rules aim to prevent ''dubious funding'' from affecting the political process and assured that the Government is taking steps to protect the integrity of elections. In the same vein, the Minister for Democracy, Samantha Dixon, argued that current rules must adapt to new forms of interference and close legal loopholes that could be exploited by foreign actors.

One of the main changes affects large donations made by individuals moving to the United Kingdom from other countries. Under the reform, those who have recently established permanent residency in British territory must wait at least one year before being able to make political donations exceeding £100,000.

The Government explained that this restriction aims to prevent newly established individuals in the country from immediately influencing the funding of political parties or electoral campaigns through large contributions. The measure expands a limit that had already been previously announced for British citizens residing abroad.

Companies will also face stricter requirements for making political contributions. Until now, a company's ability to make donations was primarily assessed based on its revenue. With the new rules, the criterion will be based on profits earned after tax payments over the previous five years.

According to the Executive, this change will make it more difficult for companies with high revenues, but without a solid economic activity or significant tax contribution in the United Kingdom, to channel resources to political parties. Additionally, companies must demonstrate a real connection to the country, proving that they are based in British territory, that they are majority-controlled by citizens or voters of the United Kingdom, or that they maintain sufficient business activity to justify the donations.

Another key innovation relates to the funding of candidates before the official start of an electoral campaign. For the first time, those aspiring to public office must demonstrate that any resources received before formally becoming candidates come from legitimate sources.

Furthermore, they will be required to declare all donations exceeding £2,230 received during that prior period. Until now, those contributions were not subject to the same transparency requirements that apply during the electoral campaign, which, according to the Government, opened the possibility for funds of unknown or illegitimate origin to be used later to finance political activities.

The new provisions complement other reforms announced in March, including the establishment of an annual limit of £100,000 for donations made by British citizens residing abroad and the temporary prohibition of receiving donations in cryptocurrencies until a regulatory system capable of adequately supervising them is in place.

The Executive assured that it fully accepted the recommendations made by Philip Rycroft and that the reforms will be incorporated through amendments to the ''Representation of the People Bill'', which will continue to be processed in the House of Commons over the coming weeks.