Crack down on passport trafficking seriously EU cant bear to sue Cyprus?

category:Finance
 Crack down on passport trafficking seriously EU cant bear to sue Cyprus?


Cyprus initiative: 2 million euro for passport

The attraction of EU passport is not because of the social welfare of EU countries, but because EU citizens have the right of free migration within their territory.

According to the Treaty of the European Union (Maastricht Treaty) signed in 1991, EU citizens have the right to freely move and live in the EU, have the right to work in any institution (including national civil servants), and are protected by EU Member States.

This is what worries the European Commission that once a person with a criminal background obtains a passport from a member state, he can engage in a variety of illegal acts within the EU countries.

Usually, it is not easy for a non EU person to obtain an EU passport. Take Germany as an example, if he wants to become a German citizen, he must have lived in Germany for eight years legally and have a stable job and income before he can be naturalized (and only himself).

However, in 2013, in order to attract foreign investment, Cyprus launched a Cyprus investment plan in order to attract foreign investment. According to this plan, investors, spouses and children can be allowed to obtain the countrys passport as long as they invest 2 million euro locally, including 500000 Euro real estate, plus a small amount of donation.

The most controversial point of this investment plan is that Cyprus does not require investors to provide proof of the legal source of funds, nor will it review them. It only requires them to provide proof of no criminal record, which undoubtedly leaves a lot of space for people with criminal background to obtain EU passport.

Cyprus has also been prosecuted for issuing passports to wanted persons from other countries, including a Kenyan smuggler and a Malaysian businessman who is alleged to have misappropriated funds from sovereign wealth funds.

Selling passport policy is expected to be further tightened

Vera jourov u00e1, vice president of the European Commission, said in a letter to the government of Cyprus in November 2019 that the trafficking of passports is related to the security risks of the EU and the risks related to money laundering, tax evasion and corruption.

The lawyers familiar with EU law also said that legally, even investors who have obtained a passport have the right to recall the protection they have held if it is proved afterwards that they forged documents or concealed their illegal information when applying.

Despite all the pressure from the European Union, Cyprus has always wanted to stick to the plan, only promising to strengthen supervision.

In the past two years, the government of Cyprus has indeed strengthened the examination and threshold of applicants, but it is far from enough for the European Commission. Therefore, the European Commission will prepare to file a further lawsuit against Cyprus in October. In an effort to ease pressure from the European Union, President Nikos anastasiades recently announced that the government had investigated 30 suspicious naturalization procedures and recalled seven issued passports. However, anastasiades also needs to consider domestic pressure, with the large association of real estate developers in Cyprus saying in a statement issued in late September that the Cyprus investment plan has made a great contribution to the countrys economic growth and must be protected. The association also mentioned novel coronavirus pneumonia epidemic situation, the current investment environment in Cyprus has been far worse than before, if the government at this time sharply tighten the investment project, the economic situation will face unbearable weight. Source: Zhang Mei, editor in charge of Finance and Economics_ NF2100

In the past two years, the government of Cyprus has indeed strengthened the examination and threshold of applicants, but it is far from enough for the European Commission. Therefore, the European Commission will prepare to file a further lawsuit against Cyprus in October.

In an effort to ease pressure from the European Union, President Nikos anastasiades recently announced that the government had investigated 30 suspicious naturalization procedures and recalled seven issued passports. But anastashadis also needs to consider domestic pressure,

In a statement issued in late September, the association of large real estate developers in Cyprus said that the Cyprus investment plan made a great contribution to the countrys economic growth and must be protected. The association also mentioned novel coronavirus pneumonia epidemic situation, the current investment environment in Cyprus has been far worse than before, if the government at this time sharply tighten the investment project, the economic situation will face unbearable weight.