World Citizenship Council (WCC) welcomes decision of Cyprus government to revoke citizenship of 26 shady individuals involved in the passport by investment scheme, protecting the integrity of the CBI industry.
In the wake of Cyprus scandals, it is about time for Governments running CBI scheme to highly think about strengthening due diligence checks, considering most of the passport offenders commit crimes after acquiring passports. They seem clean and pass initial background checks. This loophole has been for a long time in the CBI industry and being exploited by criminals and shady characters.
WCC highly recommends Governments and Citizenship Units with the following measures, to intensify due diligence checks.
1. Recurring Due Diligence Checks
Due diligence checks is not just one time and has be recurring, with risk databases are constantly updated.
HNW persons acquiring passports for investment must be subjected to due diligence checks once every five years at the time of renewing passports. The validity of passports may be cut to 5 years for effective due diligence checks. Once the passport holder pass two initial due diligence checks, they may be granted permanent passports with 10 year validity. Governments must employ latest and update risk and compliance tools querying international databases for background checks.
2. Politically Exposed Persons
Politically Exposed Persons (PEP) must also be considered high-risk, and must be subjected to Enhanced Due Diligence (EDD) checks or PEPs may be refused passports for investments.
3. Lack of Knowledge
The lack of knowledge and understanding of Due diligence (DD) checks, leads of abuse of CBI schemes by rich shady characters. Effectively promotion and marketing of DD checks will probably discourage shady characters and criminals applying for CBI schemes, probably this will save lot of time for agents, governments and embarrassment in the future.
4. Allocate more funds for CIP checks
Governments must consider allocating a part of CIP revenues for post due diligence checks to protect the integrity of the CBI industry or CBI passport holders may be asked to pay due diligence fee at the time of renewing passports after expiry.
5. Sanctions databases
Sanctions databases are constantly changing with time, individuals and companies hit by US/OFAC sanctions must NOT be approved of CBI passports.
6. Revoke passports
Governments should not hesitate to revoke passports for wanted persons. This will send a clear message to passport abusers, who think acquiring passports through CBI schemes is too easy and can get away with it.
7. DD Firms
Governments can hire services from reputable due diligence service providers in the CBI industry.
About World Citizenship Council (WCC)
World Citizenship Council is a non-profit organization, a startup launched in 2018, for research, development and promotion of Citizenship and residence by investment schemes around the world. The Council brings together immigration experts and firms through meetings and conferences.
The Council focuses on key areas, such as, due diligence and new technologies to help countries with these issues. Other issues such as migration, citizenship, refugees, taxation and dual citizenship will be on the forefront.
Membership is free for individuals and firms involved in the immigration industry. Register at: https://worldcitizenshipcouncil.org/register/
