PRO-Corbyn campaign Momentum may have broken spending rules at this year's general election, it has emerged.
The elections watchdog has opened an investigation into the campaign's accounts.
The Electoral Commission probe will consider whether Momentum breached strict limits for non-party campaigners in national elections and if the accounts submitted to authorities were accurate.
Officials will examine whether or not the paperwork accurately recorded donations and payments relating to the snap vote.
Bob Posner, director of finance and regulation and legal counsel at the watchdog, said: "Momentum are a high-profile active campaigning body. Questions over their compliance with the campaign finance rules at June's general election risks causing harm to voters' confidence in elections.
"There is significant public interest in us investigating Momentum to establish the facts in this matter and whether there have been any offences.
"Once complete, the Commission will decide whether any breaches have occurred and, if so, what further action may be appropriate, in line with its enforcement policy."
Left-wing Momentum was founded by Jon Lansman to support Jeremy Corbyn's leadership while his position as Labour leader was seen to be at risk from centrist MPs and activists.
Its membership has now reached more than 23,000, including 150 groups and 200,000 supporters.
Electoral law imposes strict spending limits on non-party campaigners seeking to influence people to vote for one particular political party or any of its candidates.
Momentum reported total spending of £38,742.54 across the United Kingdom during the general election campaign, £257.46 below the £39,000 limit.
The investigation will look at whether or not this paperwork lacked a complete statement of payments and all invoices for payments of more than £200, as well as whether donation information was accurate.
A spokesman for Momentum said: "Much of the Electoral Commission investigation refers to a series of administrative errors that can be easily rectified.
"Momentum put a lot of effort and resources into detailed budgeting and financial procedures during the election to ensure full compliance.
"Our election campaign was delivered on a low budget because it tapped into the energy and enthusiasm of tens of thousands of volunteers across the country.
"We have a good working relationship with the Electoral Commission, and will fully comply with the investigation going forward."
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