Furthering the Investment Migration Industry’s Sustainability

EU member states with the sovereign right to manage their own national economic policies are feeling the weight of increased pressure from EU institutions and international lobby groups to make changes to, or even phase out, their residency and citizenship by investment programmes. Julia Farrugia Portelli, Malta’s Parliamentary Secretary for Citizenship, Reforms and the Simplification of Administrative Processes speaks to the IM Yearbook about Malta’s stand and perspectives in this regard.

The Maltese programmes for residency and citizenship-by-investment (RCBI) have both been categorical achievements. Over a brief period of time, my country launched robust propositions that quickly caught the eye of investors looking to having alternative opportunities for relocation, mobility, education, and global business. Our programmes are now well established in the sector, and we believe they give competitors a good run for their money.

We ascribe to this success several elements – a robust framework, strategic marketing in receptive regions, and a thorough due diligence process that ensures only the most fit-and-proper individuals and families are accepted and granted Maltese residency and citizenship.

Beyond doubt, by far the most attractive feature is our country itself. With an economy that keeps punching above its weight, a government that’s open to entrepreneurship, innovation and business, and an increasingly cosmopolitan lifestyle in a safe and stable jurisdiction, choosing Malta becomes easy.

“Indeed, our processes are considered a benchmark to be emulated in the industry, and we are willing to share our best practices so that we can work towards standardisation in the sector.”

Our Challenges

Sometimes, then, success brings on its own set of challenges. Notwithstanding the sovereign entitlement of Member States and countries to offer second citizenship and residency, notwithstanding being enablers of mobility, offering global citizens better family situations and fresh opportunities to do business, there is a mounting pressure on phasing out these programmes.

Although we are not on the same page, we acknowledge and understand the concerns that are being voiced in various echo chambers. They disregard the valuable direct contribution to sovereign wealth and state economies. They overlook the legitimate global demand brought about by regional political and economic volatility. They discount the fact that the percentage of individuals granted citizenship and residency in the EU via investment is a minute fraction of those naturalised by other means, where the due diligence process is nowhere like that employed by RCBI programmes.

We acknowledge the apprehension that disreputable individuals may be able to find their way into the Union. However, we are confident these fears can be allayed by a guarantee of thorough due diligence that leaves no stone unturned in filtering out these individuals.

We say this with the comfort that Malta already applies the highest of standards in enhanced due diligence checks. Indeed, our processes are considered a benchmark to be emulated in the industry, and we are willing to share our best practices so that we can work towards standardisation in the sector.

Despite this, all investment migration programmes should aim for attaining the highest standards to ensure that integrity and reputability become benchmarks across the industry. For the sake of transparency, Malta also regularly publishes the names of new citizens, and takes all the necessary steps to uphold European regulation on anti-money laundering, counter terrorism and tax avoidance.

The Future Ahead

In this context, it is clear that the way forward for sustainable RCBI programmes is one of strict self-regulation, applying the highest operational standards that appease the most demanding of regulators.