The European Union (EU) said today that it would take legal action against Cyprus and Malta over a scheme to issue “golden passports” to foreign investors that has been criticized for being used by criminals.
Cyprus said last week that it would cancel the “golden passport” program, which brought in 7 billion euros to the country from next month, after an undercover television investigation exposed the abuse of the program.
Maros Sefcovic, vice president of the European Commission, said that “illegal procedures” will be initiated against Cyprus and Malta on the 20th.
Sefcovic told reporters: “It is important to underline the fact that the EC has often raised serious concerns about the (Golden Passport) program with the member states concerned, and this latest development only reiterates those earlier concerns.”
“We will continue to engage intensively with Cyprus and Marta to ensure that European law is properly followed in this area.”
Sevkovic said that more details would be made public once legal action was launched on the 20th.
Under Cyprus’ “Golden Passport” program, the government issues passports in exchange for 2.5 million euros in investments, but Cyprus is re-examining all 4,000 success stories.
Al Jazeera reported in August that dozens of applicants for the “Golden Passport” were under criminal investigation or were under international sanctions or even serving prison sentences.
Malta began “selling” passports to wealthy foreigners in 2014, and last month the chief of staff to former Maltese Prime Minister Joseph Muscat was arrested in connection with an investigation into kickbacks related to the country’s “golden passport” program.
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