A report in the Financial Times indicates that Brussels is fed up with certain of its member countries handing out Golden Visas to non-EU nationals - it fears that the current vetting procedures are inadequate to stop money laundering.
Dirty money from Russia is under the spotlight, especially as it heads to EU states where money can buy citizenship and can enable free Schengen area travel.
These Golden Visa schemes are available to rich applicants attracted by Malta, Cyprus, Austria, Greece, Hungary, Latvia, Lithuania and Portugal where tax laws and European citizenship act as Sirens.
The EU’s Commissioner for Justice, Vera Jourova, told the Financial Times that “citizenship for sale” schemes in these eight member states is to be scrutinised as part an EU drive against money laundering and corruption but admitted that Brussels has no power to stop member states running these Golden Visa schemes.
Portugal’s scheme has attracted thousands of Chinese who have bought qualifying property - applicants from Brazil, Russia, South Africa, Turkey and the Lebanon are increasing in numbers.
Jourova says member states can set their own criteria for citizenship under their various Golden Visa schemes and that she is to publish a report this autumn showing that due diligence has been lacking in the scrabble to attract the rich.
In March this year, Transparency International and the Organised Crime and Corruption Reporting Project found that these Golden Visa schemes posed a “major corruption risk” to the EU.
Jourova said of the Commission, “We want the states to do their due diligence and not to enable criminals to come to Europe and have equal rights as people who came years ago, who work, who pay taxes and have children and have to wait for citizenship,” adding that the Commission also will work faster in updating its list of countries that have a high risk of money laundering - a list, mysteriously, that Russia does not appear on.
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