EU Is Drafting Guidelines for CBI Programs to Improve Security

The European Commission has urged countries offering citizenship by investment programs to implement stricter rules to promote enhanced security of the EU countries.

Ylva Johannsen, European Commissioner for Home Affairs, was appointed as head of the relevant oversight committee. This controlling body will monitor third-country CIB operations for 6 months.

It was informed that the following principles would be suggested to countries offering CBI programs:

? Enhanced due diligence on all applicants, which are to be conducted by reputable international due diligence third-party firms based in the EU, US, and UK of high repute. It involves the in-depth examination of applicants’ background, financial dealings, and overall credibility. E

? Mandatory interviews for all CBI applicants, which may be conducted in person or via trusted online digital platforms. They are necessary to obtain a more in-depth understanding of the applicant’s intentions and assess their credibility.

? Prohibition of mailing official citizenship documents or passports to new citizens via a postbox after the granting of citizenship. Such way of transportation of documents can potentially expose them to loss, theft, or fraud. This principle serves as a means of protection against misuse of identity. It is desirable that newly granted citizens receive these documents in person.

? Increase of investment thresholds, with a minimum of USD 200,000 (per single applicant) for applications under the donation option and a minimum of USD 400,000 for real estate investments. This increased financial requirement aims to ensure that CBI programs attract individuals who can contribute substantial economic values to the host country.

? Monitoring of a flow of funds under the anti-money laundering procedure. Investments should always be transferred directly to the host country, without being credited to accounts in other countries. This will allow to achieve transparency and traceability of the funds.

? Abolition of promotional material of passports from third countries that solely stresses on the benefit of visa-free access to the EU. The approach is based on a consideration that potential new citizens should concentrate their attention not only on the idea of a global mobility advantage and similar benefits, but think how to express commitment to the host country, while bearing in mind the responsibility a new citizenship brings.

The Commission has stressed that the abovementioned principles are crucial to the integrity of these programs and their compliance with international laws and standards.

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