A PROMINENT SNP politician has issued an unreserved apology to the chairman of Nigel Farage's Brexit Party after branding the outfit a “money laundering front”.

Alyn Smith, a long-serving SNP MEP, has agreed to pay damages as well as a significant portion of Richard Tice’s legal costs.

Mr Tice previously demanded a retraction from Mr Smith after he made the comments during a live interview on Sky News – but the SNP politician initially refused to back down.

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However, in a statement sent through his solicitors, Mr Smith said: "On 27 May 2019 I was interviewed by Sky News.

"In that interview, I stated in the context of political donations that the Brexit Party is a ‘shell company that’s a money laundering front’.

“Its chairman, Richard Tice, is concerned by implication this allegation related to him, although that was not my intention.

“Having reflected upon this following a complaint from Mr Tice, I apologise unreservedly to him and withdraw my allegation.

“I am happy to state clearly that I do not have any evidence to support such an allegation.

"I spoke in the heat of the moment and I am happy to set the record straight.

"I have agreed to pay a sum in damages to the Help for Heroes charity and I have agreed to pay legal costs.”

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Mr Tice said: “I am pleased that Alyn Smith has now apologised and withdrawn these wholly unfounded and damaging allegations.

“People are entitled to take a different view of Brexit and I respect their right to do so.

“But I will not hesitate to take action against those who make false claims about the Brexit Party and by implication those of us who run it."