Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Cyprus scraps ‘golden passport’ scheme in a blow to rich Chinese nationals

Cyprus scraps ‘golden passport’ scheme in a blow to rich Chinese nationals

An undercover report by Al Jazeera used hidden cameras to show an official and a lawmaker pledging ‘full support’ to granting a passport to a fictitious Chinese investor.

Cyprus on Tuesday scrapped a lucrative programme granting citizenship to wealthy investors, in a blow to rich Chinese nationals in search of European Union passports.

The Cypriot decision comes amid new allegations that a top state official and a veteran lawmaker were implicated in attempts to bypass strict vetting rules and issue a passport to a fictitious investor with a supposed criminal record.

Cyprus government spokesman Kyriakos Koushos said the Cabinet accepted a recommendation by the minsters of the interior and finance to cancel altogether the “golden passport” programme that has netted billions of euros over several years.

Koushos said the decision, which goes into effect on November 1, was based on the Cyprus Investment Programme’s “long-standing weaknesses, but also the abuse” of its provisions.


An aerial view of the Cypriot capital Nicosia on March 13, 2020.


He said the government would in due course look at different ways of attracting foreign investment.

Wealthy Chinese people have long sought EU citizenship by investing in countries that have a “golden passport” scheme, such as Cyprus, Portugal and Malta. A golden visa essentially grants its holder full EU citizenship, and such passports are attractive given the freedom of movement among the nations in the union, and their visa-free status in most countries in the world.

In the decade ending 2018, the EU welcomed more than 6,000 new citizens and close to 100,000 new residents through golden visa schemes, according to Transparency International, a German non-governmental organisation.

In Cyprus, the allegations surfaced in an hour-long undercover report by Al Jazeera’s investigative unit that used hidden cameras to show Parliamentary Speaker Demetris Syllouris and lawmaker Christakis Giovanis pledging “full support” to granting a passport to a fictitious Chinese investor, despite a money-laundering conviction against him.

The report also showed lawyer Andreas Pittadjis, real property agents and others outlining to a man posing as a representative for the Chinese investor different ways to skirt background checks, including a name change or granting citizenship through his wife.

Both Pittadjis and Giovanis strongly denied the allegations, saying they were fully aware that the approach was bogus and that they only played along to extract more information from the “representative” in order to file a report with Cypriot law enforcement authorities.

European Commission spokesman Christian Wigand said the bloc's executive body is looking into launching infringement proceedings against Cyprus.


A woman takes a selfie with one of a number of new high-rises transforming the skyline view, in the southern coastal city of Limassol in the eastern Mediterranean island of Cyprus in 2018.


“We watched in disbelief how high-level officials were trading European citizenship for financial gains,” Wigand told reporters in Brussels. European Commission “President [Ursula] von der Leyen was clear when saying European values are not for sale.”

Wigand said the Commission had frequently raised concerns about such investor citizenship schemes and also directly with Cypriot authorities.

Outraged Cypriots took to social media to heap scorn on the officials, with many calling for Syllouris’ resignation.

In a statement on Tuesday, Syllouris said that he would step back from his duties as of next week until an investigation is completed.

He apologised for the “unfortunate picture” and upheaval that the “staged and fragmented” report gave and which allowed his reputation and that of the institution of House Speaker to be sullied.

Cypriot officials had earlier accused Al Jazeera of an orchestrated smear campaign against the ethnically split island nation.

The programme has attracted many foreigner investors because a Cyprus passport automatically grants its holder citizenship access to the entire 27-member European Union. Around 4,000 Cypriot passports have been issued to investors under the programme, generating more than 7 billion euros (US$8.25 billion).


An employee of news network and television channel Al Jazeera is pictured at the channel’s Jerusalem office in 2017.


The Cyprus government has conceded that “mistakes” were made and has strengthened eligibility criteria in recent years. The most recent changes that lawmakers approved in August include new anti-money-laundering vetting rules and making it easier to revoke the citizenship of investors involved in, or convicted of, a serious crime.

Despite the stricter rules, the programme continued to be hounded by allegations of corruption, kickbacks and favouritism.

Cyprus’ Audit Office last month urged lawmakers to rethink legislation that empowered the government to grant citizenship to investors’ family members.

Cyprus Security and Exchange Commission recommended last month that authorities revoke citizenship from seven individuals who submitted forged documents in their application.

An independent committee has been set up to probe thousands of applications that were made since 2007. The investment programme had gathered pace after 2013, when a financial crisis nearly brought Cyprus to bankruptcy.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
×