Golden residency permits in Malta were allegedly issued to Russians with ties to the Ukraine conflict.
Golden Passports: The Controversial Practice of Selling Citizenship
We're diving into the world of citizenship-by-investment schemes, specifically focusing on Malta's golden passport program that's currently facing a European court ruling this week.
Maltese businessman Albert Avdolyan is among the golden passport holders who landed on EU sanctions lists over Moscow's war in Ukraine. Although Avdolyan can't roam the Schengen zone freely, he's got a Maltese passport as his backup. This situation highlights the loopholes in these investment-based citizenship programs.
It's been alleged that Avdolyan isn't an exception; among the golden passport holders are sixteen individuals who were reportedly politically exposed persons or ran into legal trouble later on[1]. The European Commission has criticized Malta for this scheme, emphasizing that it "undermines both the essence and the integrity of EU citizenship."
It's essential to note that Malta isn't alone in offering citizenship for cash. Europe and the Caribbean have seen such schemes pop up for decades. The UK scrapped its golden visas in 2015, stating that the program had given "opportunities for corrupt elites to access the UK."
Critics maintain that such programs pose "significant risks, including corruption, money laundering, and tax evasion." Eka Rostomashvili of Transparency International even pointed out that individuals would/do apply for passports "just before sanctions were placed on them or just before a big scandal would break and criminal prosecution would begin."
However, the applicants, like Avdolyan, often praise the benefits of obtaining a Maltese passport, such as increased travel options and ease of doing business in Europe. In Avdolyan's case, he mentioned that "as a businessman, the holding of such a passport will assist greatly with my regular trips to Europe and around the world."
The fate of Malta's golden passport program lies in the hands of the European Court of Justice, which will issue its ruling soon. The decision could lead to a ripple effect, affecting other countries like Cyprus that still offer similar programs[1].
SEE ALSO: The Future of Malta's Golden Passport Program
- European Commission, "Maltese rules on economic citizenship," accessed on April 28, 2022.
- Financial Times, "Maltese citizenship-by-investment faces ruling in European court," accessed on April 28, 2022.
- BBC News, "Maltese golden passports handed out despite sanctions warning," accessed on April 28, 2022.
- Al Jazeera, "Malta's 'golden passport' scheme under EU scrutiny," accessed on April 28, 2022.
- Melnikov invested in Malta's business sector to secure a Maltese passport, but later found himself on EU sanctions lists due to his ties with Russia's war in Ukraine.
- The crime-and-justice sector is concerned about the risk of corruption and money laundering associated with the sale of citizenship, as highlighted by the case of a Maltese businessman who was among the golden passport holders and landed on EU sanctions lists.
- Politics has played a role in the controversy surrounding Malta's citizenship-by-investment scheme, with the European Commission criticizing the program for undermining the essence of EU citizenship.
- The general-news world is closely watching the European Court of Justice's ruling on Malta's golden passport program, as it could lead to a ripple effect impacting other countries like Cyprus that still offer similar programs.
- It's interesting to note that despite the scrutiny and the controversies surrounding the sale of Maltese citizenship, individuals like Avdolyan continue to praise the benefits of obtaining a Maltese passport for increased travel options and ease of doing business in Europe.
