The scandal-hit market for passports and long-term visas is booming

From the Economist:

FOR THE industry’s critics, it is a scandal that exposes exactly what they have been warning about. Many people have an almost instinctive distaste for the business in selling long-term-residence rights in a country or even citizenship there for cash, usually in the form of an authorised investment. So a documentary this month on Al Jazeera, a Qatar-based television channel, seeming to uncover corruption in an “investment migration” scheme offered by Cyprus, did not not seem especially shocking. It showed Cypriot politicians filmed in a sting operation, apparently willing to sell their country’s passport to a (fictitious) Chinese businessman who, in the cover story, had been convicted to seven years in jail for money-laundering, and so should have been ineligible.

For the industry’s practitioners—the consultants, accountants, bankers, wealth managers, lawyers and government departments selling their country’s charms—this is a blow. Although the politicians involved have protested their innocence, Cyprus has suspended its “golden passport” scheme from November 1st. European Union officials in Brussels and members of the European Parliament were already hostile to such schemes. And in response to the latest scandal, the European Commission has begun legal action (“infringement procedures”) to investigate both Cyprus’s scheme and one offered by Malta. It is an extremely sensitive issue for the EU. On the one hand, no issue is more jealousy guarded as a “national” competence than whom a country allows to be a citizen. On the other hand, a passport from an EU member confers the right to live and work anywhere in the EU; and a “Schengen” visa allows free travel to 22 EU members and four other countries.

Source: The scandal-hit market for passports and long-term visas is booming