The European Commission said today that schemes that sell citizenship and residency to the super rich, known as ‘golden visas’, threaten the EU’s collective security and integrity.
The Commission’s report states that the citizenship schemes are “deliberately marketed and often explicitly advertised as a means of acquiring EU citizenship” with Bulgaria, Cyprus and Malta disregarding European Union law by selling passports without requiring applicants to live in their country.
A day ahead of the report’s release, the Bulgarian government announced they would suspend their citizenship scheme.
Anti-corruption watchdogs Transparency International and Global Witness warn that the report from the Commission falls short of the urgent action needed to clean up the shady industry.
“The tide is turning on the golden visa industry with the EU recognising the unacceptable security and corruption risks it creates. However, the Commission’s report tells us nothing about what Member States actually need to do - now they’ve sounded the alarm, they need to offer solutions,” said Naomi Hirst, Senior Anti-Corruption Campaigner at Global Witness. “It’s now time for Member States to take responsibility for their golden visa schemes and, following Bulgaria’s lead, suspend them until it is clear they are no longer threatening the security of the EU.”
Global Witness and Transparency International say the report's measures are not adequate. The organisations are calling for stricter due diligence measures and an EU-wide enforcement of standards.
“This report firmly puts the spotlight on dubious schemes in Member States, which is a good first step.” said Laure Brillaud of Transparency International. “However, we see little incentive for countries like Malta to scrap these lucrative schemes without strong action from international institutions such as the EU.”The Commission is not the only European body that has expressed concern with golden visas. In a draft report published in September, the European Parliament’s Special Committee on Financial Crimes and Tax Evasion (TAX3) called for the schemes to be phased out.
General/out of hours media enquiries
+44 (0) 7912517127
You might also like
Corruption & Money LaunderingBriefing
European Getaway: Inside the Murky World of Golden Visas
How mismanaged ‘Golden Visa’ schemes are enabling corruption on an unprecedented scale, and what EU institutions must do about it
Corruption & Money LaunderingBlog post
Red notice on golden visas
We have been worried about the corruption risks in golden visa schemes for a while now because we see first-hand how the corrupt operate – and we know that buying access to a safe bolthole is a desirable part of the corruption arsenal.
Corruption & Money LaunderingPress release
Home Office makes u-turn on plans to suspend 'Golden Visa' schemes - Global Witness response
The Home Office's ludicrous u-turn on Golden Visa scheme suspension is keeping Britain’s doors open to the corrupt super-rich.