ALYN Smith has been threatened with legal action after calling the Brexit Party “shysters” and a “money laundering front”.

The newly re-elected SNP MEP’s remarks have been branded “utterly false and highly damaging” by London law firm Wedlake Bell.

Brexit Party chairman Richard Tice has also called for Smith to apologise.

Speaking to Sky News, Smith had said: "Well, I've been doing this 15 years now, and I'm about to enter my fourth term, and I've seen these shysters come and go.

“And the only question about the Brexit Party now is which laws they have broken and where their campaign finances have come from and we'll find that out after the campaign.

“But they're a shell company that's a money laundering front and I have absolutely no doubt they'll be shown to be every bit as feckless as their predecessors in UKIP were."

READ MORE: Election watchdog to 'review' Brexit Party funding

Wedlake Bell have demanded that the SNP MEP say sorry by noon on Thursday.

A legal letter to Smith read: “Any viewer who was aware that Mr Tice was the chairman of the Brexit Party would conclude that you were alleging that Mr Tice is himself running a money laundering operation.

“Money laundering is a well-known crime; therefore you were implicitly accusing him of serious criminal conduct.”

Wedlake Bell also set out the wording of the requested apology. The law firm said it should read: “On 27 May 2019 I was interviewed by Sky News.

“In that interview, I stated that the Brexit Party and by implication its chairman, Richard Tice, were involved in money laundering.

“Having reflected upon this, I am happy to state that in fact, I do not have any evidence to support this allegation.

“I spoke in the heat of the moment and did not give proper considering to the implications of what I was saying.

“Neither the Brexit Party or Mr Tice are involved in money laundering. I am happy to set the record straight.”