Cyprus looks to tighten passport rules issued under investment program. A three member committee has submitted proposals to President Anastasiades, to further strengthen the cyprus investment program (CIP), according to Cyprus mail which reported today,
Among the set of regulations proposed under the new law includes.
- All investors will be monitored for 10 years, including those were approved since 2012.
- Powers will be given to authorities to revoke passports, which is obtained by fraud or false representations or breaking laws of the state
- More stipulations be added to the law making it easier for the state to strip of their citizenship.
- All service providers to be regulated by a body. Law firms by Bar Association, and accounting firms by the Institute of Certified Public Accountants.
- Real estate developers will be disqualified from serving as passport agents, since the developers are unregulated by anybody.
The Government will also speed up processing of backlog of applications currently pending due to suspension of the scheme by parliament, amid the backdrop of global pandemic which threatens the economy of small countries.
The Ministry of Interior announced the Council of Ministers will continue to consider approving any applications submitted before January 31, 2020. The Ministry of Interior has setup an Independent Three-member Committee set up to receive its own opinion on the investment scheme, after a media backlash on granting passports to high risk clients. Later Cyprus announced 26 persons have been selected to strip citizenship but the process had stalled in legal vacuum.
Cyprus fast track citizenship scheme currently requires atleast 2 million euros in the real estate market to acquire passport after 6 months of time. They also must donate 150,000 EUR to research and housing development for cyprus, according to the new rules that apply.
This scheme has a quota limit of 700 applicants ever year. Assuming each applicant pays EUR 2.15 million, this citizenship scheme brings EUR 1.5 billion worth of investments into Cyprus mostly invested in the real estate market.
Cyprus already submitted application last year, expanding its borders to join the schengen area and the country is actively pursuing joining the Visa waiver program (VWP) with the United States.
Cyprus announced tender for selection of due diligence providers subjecting applicants to enhanced due diligence checks, but the eprocurement portal shows the contract has still not been awarded to service providers. Cyprus announced spending €1.4 million euros on applicant screening last year.
Cyprus investment program remains open and fully operational despite Covid-19 outbreak.
So far 225 cases of coronavirus with 6 deaths has been reported in cyprus. Cyprus has implemented latest measures with a series of financial support package to citizens, during the pandemic.
