A Manx company is at the heart of an investigation by the National Crime Agency into fraudulent electoral funding.

Rock Holdings Limited, registered in the island with a majority shareholding owned by Arron Banks, has been identified as the source of money used to fund pro-Brexit campaigns.

As a non-UK entity, Rock Holdings is not allowed to contribute to a UK political campaign.

The investigation centres on £8m Mr Banks provided to the company ’Better For The Country’ and the campaign ’Leave.EU’.

The NCA usually investigates organised crime.

Mr Banks provided £6m to Leave.EU and £2m to BFTC. Both he and Leave.EU told the Electoral Commission that the money came from Mr Banks himself.

However, after an investigation that began on November 1, 2017, the EC has passed on its findings to the NCA which can proceed with a criminal investigation.

The EC said it has ’reasonable grounds’ to suspect Mr Banks was not the true source of the £8m.

It added: 'The parties to the financial transactions that led to the £8m being paid into BFTC’s bank account included a non-qualifying or impermissible company, Rock Holding Limited, which was incorporated in the Isle of Man.

’Leave.EU, Elizabeth Bilney (the responsible person for Leave.EU), BFTC, Mr Banks, and possibly others, concealed the true details of these financial transactions, including from us, and also did so by knowingly making statutory returns/reports which were incomplete and inaccurate, or false.

'And various criminal offences may have been committed.

'These relate to the financial transactions which led to the £8m being paid into BFTC’s bank account.

'Mr Banks and Ms Bilney (and through them BFTC and Leave.EU) gave us unsatisfactory explanations about these transactions, and we have reasonable grounds to suspect that they knowingly concealed and sought to conceal the true circumstances.'

Two of Mr Banks’ companies are involved in the part of the investigation which relates to the island.

Rock Services Limited which was incorporated in the UK in October 2006, Mr Banks is listed as a person with significant control of the company.

The parent company of Rock Services is Rock Holdings, registered in the island with Mr Banks as a majority shareholder.

The EC stated: ’As it is not a UK entity, and does not carry on business here [The UK], Rock Holdings could not lawfully make any donation or be a party to any loan to Leave.EU.’

In a statement, Mr Banks said: ‘I am pleased that the EC has referred me to the NCA. I am confident that a full and frank investigation will finally put an end to the ludicrous allegations levelled against me and my colleagues.

‘There is no evidence of any wrongdoing from the companies I own. I am a UK taxpayer and I have never received any foreign donations. The EC has produced no evidence to the contrary.

‘The EC has referred me to the NCA under intense political pressure from anti-Brexit supporters.

‘I am already in court with the EC. In witness statements the commission has admitted it got its figures wrong in relation to a previous investigation and it even submitted its final report without taking evidence from us.

‘Isn’t it funny that none of the financial contributions made by George Soros to British political campaigns are ever subject to any level of scrutiny by the EC despite his being a foreign national.’

On October 23, the Isle of Man Examiner reported on Mr Banks’ connection with a campaign to oust Tory MPs who they suspected of being remainers.