EU Parliament’s LIBE Committee Votes to Amend Visa Regulations, Targeting Citizenship-by-Investment Programs

The European Parliament’s Committee on Civil Liberties, Justice and Home Affairs (LIBE) has voted in favor of amendments to the European Union visa regulations that could have significant consequences for countries operating Citizenship-by-Investment Programs. The changes, if fully implemented, could result in the suspension of visa-free access to the EU for several third countries offering citizenship in exchange for financial investments. According to Schengen.News, this decision would directly impact five Caribbean nations: Antigua and Barbuda, Grenada, Dominica, Saint Kitts and Nevis, and Saint Lucia.

The vote, which saw 41 members in favor and 10 against, was confirmed by Imi Daily. These amendments are specifically aimed at addressing concerns surrounding so-called "Golden Passport" programs, which allow wealthy non-EU nationals to acquire citizenship in exchange for financial contributions. Currently, investor citizenship schemes listed in Annex II of Regulation (EU) 2018/1806 provide visa-free travel to the EU for non-EU nationals who would otherwise be required to obtain a visa.

A report from the European Parliament outlines the rationale behind Amendment 6, stating, "While the European Union respects the right of sovereign countries to decide on their own naturalisation procedures, visa-free travel should not be used to attract investors by offering citizenship." The amendment underscores the concern that some of these programs lack comprehensive security checks, rigorous vetting procedures, and sufficient due diligence, thereby creating security risks for EU citizens. The report specifically warns of threats such as money laundering and corruption.

The European Parliament further states that, in an effort to prevent visa-free access from being exploited for this purpose, it should be possible to "suspend the visa exemption for a third country which chooses to operate these schemes, through which citizenship is granted without any link to the third country concerned."

Golden Visa and Golden Passport Programs have long been a significant economic driver for several EU countries, drawing wealthy investors seeking European citizenship. However, these programs have often faced criticism due to their perceived association with illicit financial activities and corruption. The latest proposal aims to address these concerns through stricter regulations and potential penalties.

The new amendment also broadens the circumstances under which the EU can trigger the suspension mechanism. In addition to concerns over citizenship-by-investment schemes, the report outlines other conditions that could activate the suspension process. These include "an increase in serious criminal offences connected to nationals of that country, supported by reliable information from authorities," as well as any "deterioration in the EU’s external relations with a third country listed in Annex II caused by several reasons."

Furthermore, the European Parliament specifies that "it should be possible to trigger the suspension mechanism where, following an assessment, the Commission concludes that there is a substantial increase in the number of third-country nationals, other than nationals of that third country, who arrive legally in the territory of that third country and then irregularly enter the territory of the Member States."

The proposal for the regulation, which amends Regulation (EU) 2018/1806 in relation to the revision of the suspension mechanism, was formally presented earlier this month. As discussions progress, the potential ramifications of these amendments remain a critical topic for countries with active investor citizenship programs and for the broader EU policy on immigration and border security.

By fLEXI tEAM