Money laundering and programs of citizenship and residency by investment in the European Union
DOI:
https://doi.org/10.17561/rej.n22.7536Keywords:
Money laundering, corruption, investment, golden passports, Financial Action Task ForceAbstract
The recent scandal in the Republic of Cyprus has highlighted fears about money laundering risks and other risks associated with schemes of citizenship by investment (“golden passports”) and residency by investment (“golden visas”). This study critically examines recent developments and proposals for the regulation and supervision of the “golden passport” and “golden visa” programs in the European Union (EU). If such programs in the EU Member States are not terminated as inherently flawed, then there is a need for a common comprehensive approach to the regulation and supervision of such programs. It is argued that the Financial Action Task Force standards constitute an appropriate response to the money laundering risks that are associated with such investment plans, but the EU needs to introduce new common standards, guarantees and control mechanisms in light of the recent scandal in Cyprus.
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