"I have no doubt that this is an absolutely corrupt scheme in which members of government, real estate agents, lawyers, and others are involved,” insisted Member of the European Parliament, Ana Gomes - the anti-corruption organisation, Transparency International, has come to much the same conclusion as it today claimed that Golden Visa programmes in Europe pose "major corruption risks."The Organised Crime and Corruption Reporting Project (OCCRP) involved reporters investigating Golden Visa programmes of seven EU member states - Austria, Cyprus, Hungary, Latvia, Lithuania, Malta and Portugal - as well as the proposed programmes for Armenia and Montenegro.
The conclusion is that citizenship and residence-by-investment schemes, commonly referred to as ‘Golden Visa’ programmes, are vulnerable to abuse and undermine the fight against corruption in the European Union and its neighbours. European countries are selling access to the Schengen visa-free travel area, and EU citizenship, to foreign investors with "little scrutiny, transparency or due diligence."
Transparency International has called on Brussels to monitor these schemes and to take action to ensure the integrity of European borders are protected from the corrupt and their wealth.
Transparency International has called on Brussels to monitor these schemes and to take action to ensure the integrity of European borders are protected from the corrupt and their wealth.
“It is clear that due diligence procedures in some EU countries, such as Hungary and Portugal, have not been rigorous enough,” said Casey Kelso, advocacy director at Transparency International.
“Citizenship and residency are among the most valuable assets a country can offer an individual, but EU member states have not even been applying the same minimum checks that banks are supposed to apply to their high net-worth customers.”
Programmes in all eight EU Golden Visa countries maintain secrecy around applicants but it is clear that their wealth is not sufficiently scrutinised and that the public lacks details of the 'investments' and who ultimately benefits from them.
In the absence of public or media scrutiny, Golden Visa programmes create opportunities for current and former officials to escape prosecution and funnel illicit funds across borders.
According to OCCRP’s findings, Montenegro, which is currently in negotiations to join the EU, has granted citizenship to individuals indicted in other jurisdictions, such as the former president of Thailand and Palestine’s former minister of security, who have been charged with corruption and embezzlement, respectively.
“The Hungarian case is especially peculiar since profits from the Golden Visa programme do not appear to benefit the country but rather find their way into unknown pockets via companies, all but one of which are seated in offshore tax havens that trade in Hungary’s Golden Visa bonds,” said Miklós Ligeti, head of legal affairs at Transparency International Hungary.
New EU citizens under Golden Visa schemes include people on the ‘Kremlin list’ who are believed to be close to Russian President Vladimir Putin (Malta); and Tatiana Yumasheva, daughter of former Russian president Boris Yeltsin (Austria).
Several members of Angola’s totally corrupt ruling class have qualified for Golden Visas, as have their families, through real estate purchases in Portugal.
“Citizenship and residency are among the most valuable assets a country can offer an individual, but EU member states have not even been applying the same minimum checks that banks are supposed to apply to their high net-worth customers.”
Programmes in all eight EU Golden Visa countries maintain secrecy around applicants but it is clear that their wealth is not sufficiently scrutinised and that the public lacks details of the 'investments' and who ultimately benefits from them.
In the absence of public or media scrutiny, Golden Visa programmes create opportunities for current and former officials to escape prosecution and funnel illicit funds across borders.
According to OCCRP’s findings, Montenegro, which is currently in negotiations to join the EU, has granted citizenship to individuals indicted in other jurisdictions, such as the former president of Thailand and Palestine’s former minister of security, who have been charged with corruption and embezzlement, respectively.
“The Hungarian case is especially peculiar since profits from the Golden Visa programme do not appear to benefit the country but rather find their way into unknown pockets via companies, all but one of which are seated in offshore tax havens that trade in Hungary’s Golden Visa bonds,” said Miklós Ligeti, head of legal affairs at Transparency International Hungary.
New EU citizens under Golden Visa schemes include people on the ‘Kremlin list’ who are believed to be close to Russian President Vladimir Putin (Malta); and Tatiana Yumasheva, daughter of former Russian president Boris Yeltsin (Austria).
Several members of Angola’s totally corrupt ruling class have qualified for Golden Visas, as have their families, through real estate purchases in Portugal.
“Money laundering through real estate is not a new phenomenon, but the Golden Visa programme facilitates it exponentially,” warned Susana Coroado, vice chair of Transparency International Portugal.
Transparency International said that, "The European Parliament warned about the risks of Golden Visa programmes back in January 2014 in its joint resolution on the sale of EU citizenship. The European Commission is due to publish a report with findings on the impact of Golden Visa schemes later this year.
"The Commission must take heed of today’s revelations and ensure that proper oversight is in place if these programmes are to continue, according to the anti-corruption group.
Transparency International said that, "The European Parliament warned about the risks of Golden Visa programmes back in January 2014 in its joint resolution on the sale of EU citizenship. The European Commission is due to publish a report with findings on the impact of Golden Visa schemes later this year.
"The Commission must take heed of today’s revelations and ensure that proper oversight is in place if these programmes are to continue, according to the anti-corruption group.
