European Commission report on citizenship schemes as first step towards coordinated action: Malta

0 Comment(s)Print E-mail Xinhua, January 24, 2019
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VALLETTA, Jan.23 (Xinhua) -- The Maltese government has welcomed a report drafted by the European Commission on the so-called investor citizenship and residence schemes across the European Union (EU), describing it as a first step towards standardization.

The much-anticipated report was published on Wednesday, with the Commission promising to further scrutinize each EU member country's scheme.

The report focused on the three EU countries selling citizenship and not simply residence visas, namely Bulgaria, Cyprus and Malta, which introduced their schemes in 2005, 2007 and 2013, respectively.

The Commission noted that the schemes "pose equally serious risks to member states and the EU as a whole," including in terms of security, money laundering, corruption, circumvention of EU rules and tax evasion.

It also complained of shortcomings in the transparency and governance of such schemes.

Reacting to the report, the Maltese government said it disagreed with the statement that investor citizenship is granted under less stringent conditions than under ordinary naturalisation rights, arguing that those gaining citizenship through other paths do not undergo rigorous due diligence checks.

Referring to the report's assertion that one did not need to have a physical presence in the country, the government said Malta was one of the few jurisdictions where physical presence is mandatory.

Furthermore, it said Malta adopted one of the most stringent due diligence processes "based on a strict 4-tier investigative procedure".

"Malta agrees and supports the report's call for a uniform process across countries and is ready to share its experience and best practice it adopts, whilst maintaining an open mind to continue improving these due diligence processes," the government said.

As for concerns raised about money laundering and tax evasion, the government said its programme adhered to the EU's anti-money laundering (AML) directives, reiterating that all the necessary checks, including source of wealth, are carried out prior to granting citizenship.

Finally, it said that in its commitment to transparency, Malta is one of the few European countries that publishes the names of individuals who obtain citizenship. The due diligence checks are also public, the government said, adding that applications in Malta must be submitted to a dedicated regulator by accredited professionals. Enditem

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