Cyprus will be soon commencing due diligence checks on CIP applicants, as new rules that are scheduled to come into force next week with some minor amendment. One of the most important minor changes made includes excluding PEP persons and individuals under sanctions.
Cyprus will now be spending €1.4 million euros annually on Enhanced due diligence (EDD) checks on applicants through appointing specialized three due diligence firms, have been selected, but not named according to Kathimerini.  Since the inception of the scheme, Cyprus previously required only clean police record and other papers for the investment scheme.
Through the new DD framework, Cyprus will be able conduct enhanced global due diligence on non-Cypriot citizens applying for the acquisition of the Cypriot citizenship through naturalization by exception (Cyprus Investment Programme – CIP) and on other relevant individuals (family members or known associates) to verify their identity, background, financial history, and sources of wealth and assess the relevant risk for corruption, terrorism, money laundering, political sanctions, and their reputation.
In addition to this, the Government will also provide  training to the competent governmental staff on relevant topics, including due diligence, understanding risk andAnti-money laundering / Anti-Bribery and Corruption (AML/ABC) compliance.
The Council of Ministers tightened the Cyprus citizenship by investment program (CBI) in February this year requiring all applicants a schengen visa, increasing investment by €150,000 and rigorous vetting of all applicants including family members.
The Cabinet met two weeks ago to make some important changes for the cyprus investment scheme as a part of new rules and criteria, reported media outlets Kathimerini and Cyprus-Mail.
The new rules finalized include
- Excluding politically exposed persons (PEP) and individuals under sanctions, previously were judged on a case by case basis.
- New rules  governing the obligatory payment of €75,000 each to the Research and Innovation Foundation and the Cyprus Organisation of Land Development
From now on,
CIP applicants can now invest upto €200,000 in Cyprus stock exchange, previously limited to investment funds.  There will be no option to invest in Government bonds or treasury securities.
The €75,000 Contribution to Research foundation  is waived if invested in innovative/social businesses or €400,000 invested in fields of research, technology, education, health and renewable energy.
The Special Cyprus investment scheme is limited to 700 applicants annually.
The Cyprus investment scheme remains the biggest and most popular investor citizenship scheme in Europe, with the scheme already raised excess of 6.5bn euros and expected to contribute €1.5bn every year mostly in the luxury real estate market.
