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Golden Visas

Phasing out of risky schemes and introducing minimum EU standards for future schemes

People
Status
ongoing
Start date
February 2018
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Following the 2008 financial crisis, new kinds of investor schemes, known as golden visas and passports, have blossomed across Europe. Names and modalities differ from one Member State to the other, but objectives are the same: offering fast-track residency or even citizenship to third-country nationals in return for investments in the national economy. Although increased foreign investments in key economic sectors might be welcome, there has been overwhelming evidence that golden visa schemes have been more likely serving corrupt interests, rather than the common good.

Because the level of requirements is so low, these programmes offer an easy route for money launderers wishing to introduce substantial amounts of illicit cash to the market. Another characteristic of these schemes is that they essentially rely on their capacity to offer free access to the Schengen area, a benefit which is often advertised upfront as one of the key selling points. As such, the lack of transparency and checks over these schemes puts the EU as a whole at risk and undermines its core values and principles.

Recent revelations by Al-Jazeera regarding the Cypriot scheme, known as the Cyprus Papers and involving politicians at the highest level, the government of Cyprus announced the suspension of its passports scheme in its current form. This latest in a long line of scandals also prompted the European Commission to launch infringement procedures against Cyprus and Malta over apparent breaches of Union law in October 2020.

However, Cyprus and Malta are not the only countries where EU citizenship can be bought and the EU should adopt a more systemic and comprehensive approach. Bulgaria, Portugal and Austria have also schemes that can provide an indirect route to EU citizenship easily exploitable by corrupt individual.

TI EU has carried out landmark research and analysis into the risks posed by golden visa schemes for the integrity and security of the EU, and has been advocating since for the phasing out of risky golden visa schemes and the regulation of passport and visa sale in the future at EU level.

Recent News

Article

The golden visa industry needs regulating now

The recent revelations by the Organised Crime and Corruption Research Project (OCCRP) on the sale of a Cypriot golden passport to Jho Low, a corrupt Malaysian businessman accused of embezzling billions from the Malaysian sovereign wealth fund 1MDB,...
Article

Anti-Money Laundering & Asset Recovery Internship

The Transparency International EU Office in Brussels (TI EU) is seeking a highly motivated intern for its anti-money laundering (AML) and asset recovery (AR) work. The Intern will work under the supervision of the Senior Policy Officer responsible...

Resources

Golden Visas – TI HU – In Whose Interest – Shadows over the Hungarian Residency Bond Program

Golden Visas – TI UK – Gold rush: Investment visas and corrupt capital flows into the UK

Golden Visas – TI-S – Leaving the Corrupt at the Door

Want to know more? Get in touch

Laure Brillaud

Senior Policy Officer – Anti-Money Laundering
lbrillaud@transparency.org