A spokesperson for the European parliament confirmed to HuffPost UK that the Brexit Party leader had been referred to an advisory committee on the conduct of members.
This is a group of five MEPs that examines possible breaches of the parliament’s code of conduct, which states members should conduct themselves with “disinterest, integrity, openness, diligence, honesty, accountability and respect”.
Last week a Channel 4 News investigation claimed Banks, a millionaire insurance tycoon and close associate of Farage, paid for the former UKIP leader’s lavish lifestyle the year after the EU referendum.
This included: the lease a £4.4million, three-bedroom home in London’s upmarket Chelsea area; a Land Rover Discovery car valued at £32,300; and a close protection driver at a cost of £20,000.
Banks also furnished the Chelsea home out with furniture and fittings, including crockery, chairs and bathroom accessories – even a shower curtain.
Farage has said he did not declare the £450,000 sum as he was about to leave politics and had been planning on moving to the US.
After the Channel 4 report aired, the broadcaster was banned from events held by Farage’s Brexit Party.
Responding to the investigation, Farage labelled the broadcaster “political activists”, adding that the organisation had “lost respect for Channel 4 News”.
He told the Press Association: “This is a two way street – the relationship between people in politics and the media is always going to be a slightly tense one, obviously, but it only works if everybody ultimately has a bit of respect for each other.”
The latest news comes in a tough week for Farage – the former Ukip leader was covered in a milkshake whilst campaigning in Newcastle on Monday ahead of Thursday’s European elections.
His suit was left covered in the drink following the incident and he was quickly hurried away from the scene by staff.
Shortly afterwards, he could be heard exclaiming “how did you not stop that?” and “it’s a failure” as his staff ushered him away from the scene and into a taxi.
A man will appear in court later this week charged with common assault and criminal damage over the incident.