2021/2026(INL) Citizenship and residence by investment schemes
Lead committee dossier:
Progress: Procedure completed
| Role | Committee | Rapporteur | Shadows |
|---|---|---|---|
| Lead | LIBE |
IN 'T VELD Sophia ( Renew)
|
BILČÍK Vladimír ( EPP),
YONCHEVA Elena ( S&D),
BRICMONT Saskia ( Verts/ALE),
FEST Nicolaus ( ID),
JAKI Patryk ( ECR),
ARVANITIS Konstantinos ( GUE/NGL)
|
| Committee Opinion | ECON |
Lead committee dossier:
Legal Basis:
RoP 47, RoP 57
Legal Basis:
RoP 47, RoP 57Subjects
Events
2022/03/09
EP - Decision by Parliament
Details
The European Parliament adopted by 595 votes to 12, with 74 abstentions, a resolution with proposals to the Commission on citizenship and residence by investment schemes.
Several Member States operate citizenship by investment (CBI) and residence by investment (RBI) schemes that confer citizenship or resident status on third-country nationals in exchange for primarily financial considerations in the form of ‘passive’ capital investments. Such CBI/RBI schemes are characterised by having minimal to no physical presence requirements and offering a ‘fast track’ to residency or citizenship status in a Member State compared to conventional channels.
Bulgaria, Cyprus, Estonia, Greece, Ireland, Italy, Latvia, Luxembourg, Malta, the Netherlands, Portugal and Spain currently operate RBI schemes with minimum investment levels ranging from EUR 60 000 (Latvia) to EUR 1 250 000 (the Netherlands).
Parliament considers that schemes granting nationality on the basis of a financial investment (CBI schemes), also known as ‘golden passports’, are objectionable from an ethical, legal and economic point of view and pose several serious security risks for Union citizens, such as those stemming from money-laundering and corruption.
The lack of common standards and harmonised rules governing schemes granting residence on the basis of a financial investment (RBI schemes) may also pose such security risks, affect the free movement of persons within the Schengen area and contribute to undermining the integrity of the Union.
Members welcomed the commitment announced by the Member States to take measures to limit the sale of citizenship to Russians connected to the Russian government . They called on all Member States to stop applying their citizenship by investment and residence by investment schemes to all Russian applicants with immediate effect.
Proposed regulation
Parliament called on the Commission to submit, before the end of its current mandate, a proposal for a regulation that would comprehensively regulate various aspects of RBI schemes with the aim of harmonising standards and procedures and strengthening the fight against organised crime, money laundering, corruption and tax evasion, covering, inter alia, the following elements:
- increased due diligence and rigorous background checks of the applicants and, where necessary, their family members, including the sources of their funds, mandatory checks against the Union large-scale justice and home affairs IT systems and vetting procedures in third countries;
- the regulation, proper certification and scrutiny of intermediaries as well as limitation of their activities and, in the case of CBI schemes, the cessation of their services;
- harmonised rules and obligations on Member States to report to the Commission regarding their RBI schemes and applications thereunder;
- minimum physical residence requirements and minimum active involvement in the investment, quality of investment, added value and contribution to the economy as conditions for acquiring residence under RBI schemes;
- a monitoring mechanism for the ex-post control of successful applicants’ continued compliance with the legal requirements of RBI schemes.
Parliament asked the Commission to include in its proposal targeted revisions of existing Union legal acts that could help to dissuade Member States from establishing harmful RBI schemes by strengthening legal acts in the field of anti-money laundering and by strengthening relevant provisions in the Long-Term Residence Directive.
Proposals for a comprehensive legislative package
Members reminded the Commission President of her commitment to Parliament’s right of initiative and of her pledge to follow Parliament’s own-initiative legislative reports up with a legislative act. The proposals annexed to the report concern:
- a Union-wide gradual phasing out of CBI schemes by 2025;
- a comprehensive regulation covering all residence by investment schemes in the EU;
- a new category of EU own resources , consisting of a citizenship by investment and residence by investment adjustment mechanism' to compensate for the negative effects of these programmes on all Member States, through a fair contribution to the EU budget;
- a targeted revision of the legal acts in the areas of anti-money laundering and combating the financing of terrorism (addition of the public authorities responsible for processing applications under the residence for investment schemes to the list of obliged entities under legal acts in force; improved exchange of information on applicants; enhanced due diligence measures);
- a targeted revision of the Directive to long-term residents which would restrict the scope of the Directive, expressly excluding beneficiaries of residence for investment schemes;
- ensuring that third countries do not administer harmful residence and citizenship-by-investment schemes.
Documents
2022/03/07
EP - Debate in Parliament
Documents
2022/02/16
EP - Committee report tabled for plenary
Details
The Committee on Civil Liberties, Justice and Home Affairs adopted the legislative initiative report by Sophia IN 'T VELD (Renew Europe, NL) with proposals to the Commission on citizenship and residence by investment schemes.
Several Member States operate citizenship by investment (CBI) and residence by investment (RBI) schemes that confer citizenship or resident status on third-country nationals in exchange for primarily financial considerations in the form of ‘passive’ capital investments. Such CBI/RBI schemes are characterised by having minimal to no physical presence requirements and offering a ‘fast track’ to residency or citizenship status in a Member State compared to conventional channels.
Bulgaria, Cyprus, Estonia, Greece, Ireland, Italy, Latvia, Luxembourg, Malta, the Netherlands, Portugal and Spain currently operate RBI schemes with minimum investment levels ranging from EUR 60 000 (Latvia) to EUR 1 250 000 (the Netherlands).
CBI and RBI schemes pose risks to different extents, including risks of corruption, money laundering, security threats, tax avoidance, macro-economic imbalances, pressure on the real estate sector, thereby diminishing access to housing, and the erosion of the integrity of the internal market.
Since 2014, Parliament has been calling for a ban of CBI/RBI schemes, but so far the Commission has not put forward any proposals. In July 2019, before her election by Parliament, Commission President Von der Leyen committed to responding to requests for legislative proposals by Parliament “with a legislative act in full respect of the proportionality, subsidiarity and better law-making principles”. This legislative initiative of Parliament fully meets all those criteria.
Aims of the initiative
The comprehensive set of measures will lead to the phasing out of golden passports , and it will regulate RBI schemes so that they will lose their attractiveness to crooks. The proposed measures will address different aspects of the matter: screening of the applicants, residency requirements, the type of investment, risks of money laundering and tax evasion. It also foresees for the proceeds of the sale of citizenship and residency rights to benefit the Union budget, given that they are based exclusively on the benefits of Union membership.
The report stated that schemes granting nationality on the basis of a financial investment (CBI schemes), also known as ‘golden passports’, are objectionable from an ethical, legal and economic point of view and pose several serious security risks for Union citizens, such as those stemming from money-laundering and corruption.
Members consider that Union citizenship is not a commodity that can be marketed or sold and has never been conceived as such in the Treaties.
The Commission is requested to:
- submit, before the end of its current mandate, a proposal for a regulation that would comprehensively regulate various aspects of RBI schemes with the aim of harmonising standards and procedures and strengthening the fight against organised crime, money laundering, corruption and tax evasion;
- include in its proposal targeted revisions of existing Union legal acts that could help to dissuade Member States from establishing harmful RBI schemes by strengthening legal acts in the field of anti-money laundering and by strengthening relevant provisions in the Long-Term Residence Directive.
Members reminded the Commission President of her commitment to Parliament’s right of initiative and of her pledge to follow Parliament’s own-initiative legislative reports up with a legislative act.
The proposals annexed to the report concern:
- a Union-wide gradual phasing out of CBI schemes by 2025;
- a comprehensive regulation covering all RBI schemes in the Union;
- a new category of the Union’s own resources, consisting of a ‘CBI and RBI adjustment mechanism’;
- a targeted revision of legal acts in the area of anti-money laundering and countering the financing of terrorism;
- a targeted revision of the Long-Term Residence Directive;
- the guarantee that third countries do not administer harmful RBI/CBI schemes.
Documents
2022/02/15
EP - Vote in committee
2021/12/13
EP - Amendments tabled in committee
Documents
2021/11/10
EP - Committee draft report
Documents
2021/04/29
EP - Committee referral announced in Parliament
2021/04/29
EP - Referral to associated committees announced in Parliament
2021/03/11
EP - IN 'T VELD Sophia (Renew) appointed as rapporteur in LIBE
Documents
- Decision by Parliament: T9-0065/2022
- Debate in Parliament: Debate in Parliament
- Committee report tabled for plenary: A9-0028/2022
- Amendments tabled in committee: PE702.999
- Committee draft report: PE697.745
- Committee draft report: PE697.745
- Amendments tabled in committee: PE702.999
Activities
- Sophia IN 'T VELD
Plenary Speeches (2)
- Malin BJÖRK
Plenary Speeches (1)
- Heidi HAUTALA
Plenary Speeches (1)
- Maite PAGAZAURTUNDÚA
Plenary Speeches (1)
- Sirpa PIETIKÄINEN
Plenary Speeches (1)
- Paul TANG
Plenary Speeches (1)
- Ernest URTASUN
Plenary Speeches (1)
- Gwendoline DELBOS-CORFIELD
Plenary Speeches (1)
- Nicolaus FEST
Plenary Speeches (1)
- José GUSMÃO
Plenary Speeches (1)
- Michal ŠIMEČKA
Plenary Speeches (1)
- Ramona STRUGARIU
Plenary Speeches (1)
- Margarida MARQUES
Plenary Speeches (1)
- Sabrina PIGNEDOLI
Plenary Speeches (1)
Votes
Programmes d’octroi de citoyenneté et de résidence contre investissement - Citizenship and residence by investment schemes - Programme zum Erwerb einer Staatsbürgerschaft oder von Aufenthaltsrechten im Gegenzug für Investitionen - A9-0028/2022 - Sophia in 't Veld - § 8 - Am 2 #
2022/03/08 Outcome: +: 625, -: 27, 0: 26
PPE
The Left
NIA9-0028/2022 - Sophia in 't Veld - Après le § 22 - Am 3 #
2022/03/08 Outcome: +: 621, 0: 45, -: 7
A9-0028/2022 - Sophia in 't Veld - Considérant H - Am 1 #
2022/03/08 Outcome: +: 625, 0: 45, -: 8
Programmes d’octroi de citoyenneté et de résidence contre investissement - Citizenship and residence by investment schemes - Programme zum Erwerb einer Staatsbürgerschaft oder von Aufenthaltsrechten im Gegenzug für Investitionen - A9-0028/2022 - Sophia in 't Veld - Proposition de résolution (ensemble du texte) #
2022/03/09 Outcome: +: 595, 0: 74, -: 12
| Amendments | Dossier |
| 139 |
2021/2026(INL)
2021/12/15
LIBE
139 amendments...
Amendment 1 #
Motion for a resolution Citation 6 a (new) — having regard to Council Directive 2003/86/EC of 22 September 2003 on the right to family reunification1a (the 'Family Reunification Directive') _________________ 1a OJ L 251, 3.10.2003, p. 12.
Amendment 10 #
Motion for a resolution Recital G G.
Amendment 100 #
Motion for a resolution Annex I – indent 6 – point a (a) a Union-level licensing procedure for intermediaries containing a thorough procedure with due diligence and auditing of the intermediary company, its owners and its related companies. The license should be subject to renewal every second year and be featured in a public Union register for intermediaries. Where intermediaries are involved in applications, Member States should only be allowed to process such applications when prepared by Union-licensed intermediaries. Applications for licensing should be made to the Commission, to be supported by the relevant Union agencies
Amendment 101 #
Motion for a resolution Annex I – indent 6 – point b (b) specific rules for the activities of intermediaries. That should include detailed rules concerning the background checks, due diligence and security checks that the intermediaries are to carry out on applicants
Amendment 102 #
Motion for a resolution Annex I – indent 6 – point c Amendment 103 #
Motion for a resolution Annex I – indent 6 – point c (c) a Union-wide ban on marketing practices for RBI schemes. That should include prohibiting intermediaries processing applications under RBI schemes from using the Union flag on any materials, website or documents and from associating the RBI to any benefits linked to the Treaties and to the rights under the acquis.
Amendment 104 #
Motion for a resolution Annex I – indent 6 – point c (c) a Union-wide ban on
Amendment 105 #
Motion for a resolution Annex I – indent 6 – point e (e) anti-corruption measures
Amendment 106 #
Motion for a resolution Annex I – indent 6 – point e (e) anti-corruption measures to be adopted within the intermediary, including on appropriate staff remuneration, the two- person rule (that every step is checked by at least two persons) and provisions for a second opinion when preparing applications and carrying out checks on
Amendment 107 #
Motion for a resolution Annex I – indent 6 – point f (f)
Amendment 108 #
Motion for a resolution Annex I – indent 6 – point f (f) a ban on combining the consultation of governments on the
Amendment 109 #
Motion for a resolution Annex I – indent 6 – point g (g) a monitoring, investigations and sanctions framework to ensure that intermediaries comply with the re
Amendment 11 #
Motion for a resolution Recital G G. Whereas the operation of CBI schemes lead to the commodification of Union citizenship; whereas such commodification of rights is not compatible with Union values
Amendment 110 #
Motion for a resolution Annex I – indent 7 — A duty for Member States to report to the Commission regarding their RBI schemes should be introduced. The Member States should submit a detailed annual report to the Commission on the overall institutional and governance elements of their schemes. They should also report on
Amendment 111 #
Motion for a resolution Annex I – indent 7 — A duty for Member States to report to the Commission regarding their RBI schemes should be introduced. The Member States should submit
Amendment 112 #
Motion for a resolution Annex I – indent 7 — A duty for Member States to report to the Commission regarding their RBI schemes should be introduced. The Member States should submit
Amendment 113 #
Motion for a resolution Annex I – indent 7 — A duty for Member States to report to the Commission regarding their CBI/RBI schemes should be introduced. The Member States should submit a detailed annual report to the Commission on the overall institutional and governance elements of their schemes. They should also report on individual applications and on rejections and approvals of applications. The Commission should carry out, in cooperation with Europol (including through its liaison officers in third countries) and Frontex, Union-level final checks of applications against the relevant Union and international databases and
Amendment 114 #
Motion for a resolution Annex I – indent 8 — A system for prior notification
Amendment 115 #
Motion for a resolution Annex I – indent 8 — A system for prior notification to and consultation with all other Member States prior to granting residence under a
Amendment 116 #
Motion for a resolution Annex I – indent 9 — Member States should be required to effectively check physical residence on their territory and to keep a record of it, which the Commission and Union agencies can consult.
Amendment 117 #
Motion for a resolution Annex I – indent 9 — Member States should be required to effectively check physical residence, preferably by establishing maximum periods of absence, on their territory and to keep a record of it, which the Commission and Union agencies can consult. That should include at least biannual in-person reporting appointments and on-site visits to the domicile of the individuals concerned.
Amendment 118 #
Motion for a resolution Annex I – indent 10 — To combat tax avoidance, specific Union measures to prevent and tackle the circumvention of the Common Reporting Standard through CBI/RBI schemes, in particular the enhanced exchange of information between tax authorities, should be introduced2. _________________ 2 See: Preventing abuse of residence by investment schemes to circumvent the CRS, OECD, 19 February 2018; Council Directive 2014/107/EU of 9 December 2014 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation (OJ L 359, 16.12.2014, p. 1).
Amendment 119 #
Motion for a resolution Annex I – indent 11 Amendment 12 #
Motion for a resolution Recital G G. Whereas the operation of CBI schemes lead to the commodification of Union citizenship; whereas such commodification of rights
Amendment 120 #
Motion for a resolution Annex I – indent 11 Amendment 121 #
Motion for a resolution Annex I – subheading 3 Amendment 122 #
Motion for a resolution Annex I – subheading 3 Amendment 123 #
Amendment 124 #
Motion for a resolution Annex I – indent 13 Amendment 125 #
Motion for a resolution Annex I – indent 13 — As all Member States and the Union institutions are confronted with the risks and costs of the CBI and RBI schemes operated by some Member States, a common mechanism to offset the negative consequences of CBI and RBI schemes, based on appropriate data and information, is justified. Moreover, the value of selling Member State citizenship or visas is inherently linked to the Union rights and freedoms that come with it. By establishing a CBI and RBI adjustment mechanism, the negative consequences borne by all Member States are compensated through
Amendment 126 #
Motion for a resolution Annex I – indent 14 Amendment 127 #
Motion for a resolution Annex I – indent 14 Amendment 128 #
Motion for a resolution Annex I – indent 14 Amendment 129 #
Motion for a resolution Annex I – indent 15 – introductory part — The Commission has made a welcome step by including RBI schemes prominently in its package of legislative proposals of 20 July 2021 to revise legal acts in the area of anti-money laundering and countering the financing of terrorism, especially where it concerns intermediaries. T
Amendment 13 #
Motion for a resolution Recital H H. Whereas Malta and Cyprus operate CBI schemes; whereas Cyprus announced on 13 October 2020 that it would suspend its CBI scheme, only processing applications received before November 2020; whereas some other Member States reward big investors with citizenship using extraordinary procedures;
Amendment 130 #
Motion for a resolution Annex I – indent 15 – point a (a) public authorities engaged in
Amendment 131 #
Motion for a resolution Annex I – indent 15 – point b (b) greater exchange of information on applicants under CBI/RBI schemes between the Member State authorities under legal acts in the area of anti-money laundering and countering the financing of terrorism, specifically between the Financial Intelligence Units.
Amendment 132 #
Motion for a resolution Annex I – indent 15 – point b a (new) (ba) enhanced due diligence measures recommended by the OECD to mitigate the risk posed by the RBI schemes to be foreseen for all obliged entities involved into the process.
Amendment 133 #
Motion for a resolution Annex I – indent 15 a (new) - In case a new regulation or any other legislative act concerning RBI schemes comes into force before the complete phase-out of CBI schemes, all rules shall apply to CBI schemes in order to avoid less strict controls for CBI schemes than for RBI schemes.
Amendment 134 #
Motion for a resolution Annex I – indent 16 — The Commission should, when it comes forward with its expected proposals for the revisions of the Long-Term Residence Directive, limit the possibility of third-country nationals who have obtained residence under a
Amendment 135 #
Motion for a resolution Annex I – indent 19 — A new article should be added to Regulation (EC) No 810/2009 of the European Parliament and of the Council of 13 July 2009 establishing a Community Code on Visas (Visa Code)3 on cooperation with third countries on phasing out their CBI schemes and bringing their RBI schemes in line with the new Regulation proposed under proposal 2 above.
Amendment 136 #
Motion for a resolution Annex I – indent 19 — A new article should be added to Regulation (EC) No 810/2009 of the European Parliament and of the Council of 13 July 2009 establishing a Community Code on Visas (Visa Code)3 on cooperation with third countries on
Amendment 137 #
Motion for a resolution Annex I – indent 20 — For candidate countries and potential candidate countries, the complete phase-out of CBI schemes and the strict regulation of RBI schemes should be a prominent part of the accession criteria.
Amendment 138 #
Motion for a resolution Annex I – indent 20 — For candidate and potential candidate countries, their complete phase- out of CBI schemes and their strict regulation of RBI schemes should be a
Amendment 139 #
Motion for a resolution Annex I – indent 20 — For candidate countries,
Amendment 14 #
Motion for a resolution Recital I I. Whereas Bulgaria, Cyprus, Estonia, Greece, Ireland, Italy, Latvia, Luxembourg, Malta, the Netherlands, Portugal and Spain currently operate RBI schemes with minimum investment levels ranging from EUR 60 000 (Latvia) to EUR 1 250 000 (the Netherlands); whereas attracting investment is a natural and vital method of maintaining well functioning economies of Member States, but as such should not pose legal and security risks to Union citizens;
Amendment 15 #
Motion for a resolution Recital M M. Whereas CBI/RBI schemes pose a wide range of risks that include corruption, money laundering, security threats and tax avoidance;
Amendment 16 #
Motion for a resolution Recital M M. Whereas CBI/RBI schemes may pose a wide range of risks that include corruption, money laundering, security threats and tax avoidance; whereas those risks
Amendment 17 #
Motion for a resolution Recital M a (new) Ma. Whereas CBI/RBI schemes have severe political, social and economic impacts, including creating macro- economic imbalances, pressuring the real estate sector, causing lack of access to housing, and eroding the security and integrity of the internal market, supplemented by impact on mobility and increased discrimination, deteriorating trust in the Union institutions, devaluating Union citizenship values and affecting the quality of evidence-based policy;
Amendment 18 #
Motion for a resolution Recital M a (new) Ma. Whereas CBI/RBI schemes have a dual nature: the investment on the one hand and the residency/citizenship on the other, which requires a comprehensive approach when regulating that subject matter;
Amendment 19 #
Amendment 2 #
Motion for a resolution Citation 6 a (new) — having regard to Council Directive 2003/86/EC of 22 September 2003 on the right to family reunification1a, _________________ 1a OJ L 251, 3.10.2003, p. 12.
Amendment 20 #
Motion for a resolution Recital N N. Whereas some CBI/RBI schemes
Amendment 21 #
Motion for a resolution Recital O O. Whereas
Amendment 22 #
Motion for a resolution Recital Q Q. Whereas the Commission initiative to establish a Group of Experts on Investor Citizenship and Residence Schemes was aimed at Member States’ representatives agreeing on a common set of security checks but did not propose such a common set of security checks; whereas that group has not met since 2019;
Amendment 23 #
Motion for a resolution Recital R a (new) Amendment 24 #
Motion for a resolution Recital T a (new) Ta. Whereas in 2019 the Commission concluded that clear statistics on CBI/RBI applications received, accepted and rejected are missing or insufficient;
Amendment 25 #
Motion for a resolution Paragraph 1 1. Considers that schemes granting nationality
Amendment 26 #
Motion for a resolution Paragraph 1 1. Considers that schemes granting nationality or residence primarily on the basis of a financial investment (CBI/RBI schemes), also known as ‘golden passports’ or ‘golden visas’, are objectionable from an ethical and legal point of view, as well as an economic point of view;
Amendment 27 #
Motion for a resolution Paragraph 3 3. Holds that CBI schemes undermine the
Amendment 28 #
Motion for a resolution Paragraph 5 Amendment 29 #
Motion for a resolution Paragraph 5 5. Acknowledges that regulating the acquisition of nationality is primarily a Member State competence but stresses that that competence needs to be exercised in good faith, in a spirit of mutual respect, transparently, with due diligence and proper scrutiny, in accordance with the principle of sincere cooperation and in full respect of Union law15 ; considers that where Member States do not act in full compliance with those standards and principles, a legal ground for Union action arises; considers that a Union competence could also arise on the basis of Article 21(1) of the Treaty on the Functioning of the European Union (TFEU) with respect to certain aspects of Member State nationality law16 ; _________________ 15 See the reasoning used in the Commission infringement procedures against Malta and Cyprus with respect to their investor citizenship schemes (https://ec.europa.eu/commission/presscorn er/detail/en/ip_20_1925) and the case law of the Court of Justice of the European Union: Judgment of the Court of 7 July 1992, Mario Vicente Micheletti and others v Delegación del Gobierno en Cantabria, C-369/90, ECLI:EU:C:1992:295; Judgment of the Court of 11 November 1999, Belgian State v Fatna Mesbah, C- 179/98, ECLI:EU:C:1999:549; Judgment of the Court of 20 February 2001, Judgment of the Court of 20 February 2001, The Queen v Secretary of State for the Home Department, ex parte: Manjit Kaur, C-192/99, ECLI:EU:C:2001:106;
Amendment 3 #
Motion for a resolution Citation 14 — having regard to its resolution of 16 January 2014 on EU citizenship for sale4 , of 26 March 2019 on financial crimes, tax evasion and tax avoidance4a, of 18 December 2019 on the Rule of Law in Malta following the recent revelations around the murder of Daphne Caruana Galizia5 , of 10 July 2020 on a comprehensive Union policy on preventing money laundering and terrorist financing - the Commission Action Plan and other recent developments6 , of 17 December 2020 on the EU Security Union Strategy7 ; of 29 April 2021 on the assassination of Daphne Caruana Galizia and the Rule of Law in Malta8 , _________________ 4 OJ C 482, 23.12.2016, p. 117. 4a OJ C 108, 26.3.2021, p. 8. 5 OJ C 255, 29.6.2021, p. 22. 6 OJ C 371, 15.9.2021, p. 92. 7 OJ C 445, 29.10.2021, p. 140. 8 Texts adopted, P9_TA(2021)0148
Amendment 30 #
Motion for a resolution Paragraph 5 a (new) 5a. Calls on the Member States to simplify and speed up the naturalisation procedures applicable to permanently residing third country nationals, thus opening access to Union citizenship without commodification;
Amendment 31 #
Motion for a resolution Paragraph 6 6. Believes that the advantageous conditions and fast-track procedures set for investors under CBI/RBI schemes
Amendment 32 #
Motion for a resolution Paragraph 6 6. Believes that the advantageous conditions and fast-track procedures set for investors under CBI/RBI schemes, when compared to the conditions and procedures for other third-country nationals wishing to obtain international protection, residence or citizenship
Amendment 33 #
Motion for a resolution Paragraph 7 7. Considers that CBI schemes
Amendment 34 #
Motion for a resolution Paragraph 9 9. Considers that the role of intermediaries in developing and promoting
Amendment 35 #
Motion for a resolution Paragraph 10 10. Deplores the lack of comprehensive security checks, vetting procedures and due diligence in Member States that have CBI/RBI schemes in place; regrets that Member States do not always consult the available Union databases and do not exchange information on the outcome of such checks and procedures, allowing for successive applications across the Union; considers that Member States' authorities must have in place adequate processes for vetting CBI/RBI applicants and must not rely on background checks and due diligence procedures carried out by non-state actors as granting residency and citizenship rights is the responsibility of the State;
Amendment 36 #
Motion for a resolution Paragraph 10 10. Deplores the lack of comprehensive security checks, vetting procedures and due diligence in Member States that have CBI/RBI schemes in place; regrets that Member States do not always consult the available Union databases and do not exchange information on the outcome of such checks and procedures, allowing for successive applications across the Union; considers that Member States' authorities must have in place adequate processes for vetting CBI/RBI applicants and must not rely on background checks and due diligence procedures carried out by non- state actors as granting residency and citizenship rights is the responsibility of the State;
Amendment 37 #
Motion for a resolution Paragraph 10 10. Deplores the lack of comprehensive security checks, vetting procedures and due diligence in Member States that have CBI/RBI schemes in place; regrets that Member States do not always consult the
Amendment 38 #
Motion for a resolution Paragraph 10 10. Deplores the lack of comprehensive security checks, vetting procedures and due diligence in Member States that have CBI/RBI schemes in place;
Amendment 39 #
Motion for a resolution Paragraph 11 11. Regrets that the Group of Experts on Investor Citizenship and Residence Schemes, composed of Member State representatives, has not agreed on a
Amendment 4 #
Motion for a resolution Recital C C. Whereas several Member States operate citizenship by investment (CBI) and residence by investment (RBI) schemes that confer citizenship or resident status upon third-country nationals in exchange for primarily financial considerations in the form of ‘passive’ capital investments; whereas CBI/RBI schemes are characterised by having minimal to no physical presence requirements and offering a ‘fast track’ to residency or citizenship status in a Member
Amendment 40 #
Motion for a resolution Paragraph 12 12. Deplores the fact that residency requirements to qualify under the RBI/CBI schemes of Member States do not always include continuous and effective physical presence and are difficult to monitor, thereby potentially attracting bad faith applicants who purchase national citizenship purely for the access it grants to the Union territory and its single market without any
Amendment 41 #
Motion for a resolution Paragraph 13 13.
Amendment 42 #
Motion for a resolution Paragraph 13 a (new) 13a. Highlights the fact that CBI/RBI schemes consist of two quasi-independent elements of one relationship, not as one element (investment) leading directly to a second element (residency or citizenship), and urges the Member States to treat these schemes taking that fact into account;
Amendment 43 #
Motion for a resolution Paragraph 14 14. Welcomes the infringement procedures launched in October 2020 by the Commission against Cyprus and Malta concerning their CBI schemes; calls on the Commission to advance those procedures and to initiate infringement procedures against Member States for RBI schemes, where justified; calls on the Commission, too, to carefully monitor Bulgaria’s CBI/RBI scheme;
Amendment 44 #
Motion for a resolution Paragraph 14 14.
Amendment 45 #
Motion for a resolution Paragraph 15 15. Considers that Union anti-money laundering law is a crucial element to counter the risks posed by CBI/RBI schemes; welcomes the fact that the Commission’s package of legislative proposals of 20 July 2021 on anti-money laundering and on countering the financing of terrorism addresses RBI schemes, most notably by promoting the inclusion of intermediaries on the list of obliged entities;
Amendment 46 #
Motion for a resolution Paragraph 15 15. Considers that Union anti-money laundering law is
Amendment 47 #
Motion for a resolution Paragraph 16 16. Notes that applications under CBI/RBI schemes are particularly difficult to monitor and assess where they concern joint applications that include different family members; notes that under certain national RBI schemes residency rights may be granted based on family, personal or other ties to the main applicants; notes that family reunification rights under Council Directive 2003/86/EC of 22 September 2003 on the right to family reunification18 apply after obtaining residency status in a Member State, thus allowing family members to enter the Union without further
Amendment 48 #
Motion for a resolution Paragraph 16 16. Notes that applications under CBI/RBI schemes are particularly difficult to monitor and assess where they concern joint applications that include different family members; notes that under certain national RBI schemes residency rights may be granted based on family, personal or other ties to the main applicants; notes that family reunification rights under Council Directive 2003/86/EC of 22 September 2003 on the right to family reunification18 apply after obtaining residency status in a Member State, thus allowing family members to enter the Union without further specific checks normally required under RBI schemes; _________________ 18 OJ L 251, 3.10.2003, p. 12.
Amendment 49 #
17. Notes that a risk stems from third countries that have CBI schemes and that benefit from visa-free travel to the Union19 because third-country nationals can purchase citizenship of that third country with the sole purpose of being able to enter the Union without any additional screening; stresses that risks are exacerbated for Union candidate countries that have CBI/RBI schemes20 because the expected benefits of future Union membership may be a factor; in this regard, welcomes the decision of the Montenegrin government to discontinue its investor citizenship scheme and underlines the importance of phasing out the investor citizenship scheme in Montenegro fully and effectively as soon as possible; _________________ 19Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis and Saint Lucia. 20Serbia, Albania, Turkey, Montenegro and North Macedonia.
Amendment 5 #
Motion for a resolution Recital C C. Whereas several Member States operate citizenship by investment (CBI) and residence by investment (RBI) schemes that confer citizenship or resident status upon third-country nationals in exchange for primarily financial considerations in the form of ‘passive’ capital investments; whereas such CBI/RBI schemes are characterised by having minimal to no physical presence requirements and offering a ‘fast track’ to residency or citizenship status in a Member State compared to conventional channels; whereas application processing times vary substantially between Member States10 ; _________________ 10 EPRS EAVA Study, table 9, p. 28-29.
Amendment 50 #
Motion for a resolution Paragraph 17 17. Notes that a risk stems from third countries that have CBI schemes and that benefit from visa-free travel to the Union19 because third-country nationals can purchase citizenship of that third country with the sole purpose of being able to enter
Amendment 51 #
Motion for a resolution Paragraph 17 a (new) 17a. Notes with concern that the lack of common standards and harmonised rules governing CBI/RBI schemes may negatively affect the Union internal security and the free movement of persons within the Schengen area;
Amendment 52 #
Motion for a resolution Paragraph 18 Amendment 53 #
Motion for a resolution Paragraph 19 Amendment 54 #
Motion for a resolution Paragraph 19 19. Believes that, as CBI/RBI schemes constitute free riding and produce severe consequences for the Union and the Member States, a financial contribution to the Union budget is warranted, also as a concrete expression of solidarity following from, inter alia, Article 80 TFEU;
Amendment 55 #
Motion for a resolution Paragraph 19 19.
Amendment 56 #
Motion for a resolution Paragraph 19 19.
Amendment 57 #
Motion for a resolution Paragraph 19 19. Believes that, as CBI/RBI schemes
Amendment 58 #
Motion for a resolution Paragraph 20 Amendment 59 #
Motion for a resolution Paragraph 20 20. Considers that the
Amendment 6 #
Motion for a resolution Recital D D. Whereas the existence of CBI/RBI schemes affects all Member States because a decision by one Member State to grant citizenship for investment automatically confers rights in relation to other Member States, in particular free movement rights, the right to vote and stand as a candidate in local and European elections, the right to consular protection, if unrepresented outside the Union, and rights of access to the internal market to exercise economic activities; whereas the operation of a CBI/RBI scheme by an individual Member State thus generates significant externalities on other Member States; whereas those externalities warrant regulation by the Union;
Amendment 60 #
Motion for a resolution Paragraph 20 a (new) Amendment 61 #
Motion for a resolution Paragraph 21 – introductory part 21.
Amendment 62 #
Motion for a resolution Paragraph 21 – introductory part 21. Requests that the Commission submit, in 2022, on the basis of Article 79(2) and Articles 80, 82, 87 and 114 TFEU a proposal for an act that would comprehensively regulate various aspects of CBI/RBI schemes with the aim of harmonising standards and procedures and strengthening the fight against organised
Amendment 63 #
Motion for a resolution Paragraph 21 – introductory part 21.
Amendment 64 #
Motion for a resolution Paragraph 21 – point a (a) increased due diligence and rigorous background checks on the applicants and, where necessary, their family members, including mandatory checks against the Union large-scale justice and home affaires IT systems and vetting procedures in third countries;
Amendment 65 #
Motion for a resolution Paragraph 21 – point a (a) increased due diligence and rigorous background checks of the applicant and the sources of their funds;
Amendment 66 #
Motion for a resolution Paragraph 21 – point a (a) increased due diligence and rigorous background checks, including of the family members of applicants;
Amendment 67 #
Motion for a resolution Paragraph 21 – point a a (new) (aa) increased due diligence and rigorous checks of the capital of the applicants and, where necessary, of the capital of their family members;
Amendment 68 #
Motion for a resolution Paragraph 21 – point b (b) the regulation and limitation of the activities of intermediaries and, in the case of CBI schemes, the cessation of their services;
Amendment 69 #
Motion for a resolution Paragraph 21 – point b (b) the regulation
Amendment 7 #
Motion for a resolution Recital D D. Whereas the existence of CBI/RBI schemes affects all Member States; whereas the operation of a CBI/RBI scheme by an individual Member State thus generates significant externalities on other Member States; whereas those externalities warrant regulation by the Union; whereas this does not, however, warrant any exceeding or extension of EU competence; whereas nationality law remains entirely a Member State competence;
Amendment 70 #
Motion for a resolution Paragraph 21 – point c (c) harmonised rules and obligations on Member States to report to the Commission regarding their RBI schemes and applications thereunder;
Amendment 71 #
Motion for a resolution Paragraph 21 – point c (c) obligations on Member States to report to the Commission regarding their CBI/RBI schemes and applications thereunder;
Amendment 72 #
Motion for a resolution Paragraph 21 – point c a (new) (ca) setting up a mechanism for exchange of information and coordination among the Member States on granted and rejected CBI/RBI applications;
Amendment 73 #
Motion for a resolution Paragraph 21 – point d (d) minimum physical residence requirements as a condition for acquiring residence under RBI schemes as well as a monitoring mechanism at Union level;
Amendment 74 #
Motion for a resolution Paragraph 21 – point d (d) minimum physical residence requirements a
Amendment 75 #
Motion for a resolution Paragraph 21 – point d a (new) (da) monitoring mechanism for post- control of the compliance with the requirements of the schemes as well as regular reports on the added value of the schemes used by Member States;
Amendment 76 #
Motion for a resolution Paragraph 21 a (new) 21a. Requests the Commission to ensure and uphold high regulatory standards for both CBI and RBI schemes in case a comprehensive regulation would apply to RBI schemes before the complete phase-out of CBI schemes;
Amendment 77 #
Motion for a resolution Paragraph 22 22.
Amendment 78 #
Motion for a resolution Paragraph 22 22. Requests that the Commission include in its proposal targeted revisions of existing Union legal acts that could help to dissuade Member States from establishing harmful CBI/RBI schemes, such as further strengthening legal acts in the field of anti- money laundering, and targeted changes to the Long-Term Residence Directive;
Amendment 79 #
Motion for a resolution Paragraph 22 a (new) 22a. Highlights the specific nature of RBI schemes and underlines that any changes to Union legislation introduced for those applying under RBI schemes should be targeted to that specific type of residency and should not adversely affect the rights of applicants for other types of residency such as students, workers and family members; notes that higher levels of security checks for applicants under RBI/CBI schemes should not be applicable to those who apply for residency under the existing residency schemes at Union level;
Amendment 8 #
Motion for a resolution Recital D D. Whereas the existence of CBI/RBI schemes affects all Member States; whereas the operation of a CBI/RBI scheme by an individual Member State
Amendment 80 #
Motion for a resolution Paragraph 23 23.
Amendment 81 #
Motion for a resolution Paragraph 23 23. Requests that the Commission exert as much pressure as possible to ensure that third countries that have CBI/RBI schemes in place and that benefit from visa free travel under Annex II to Regulation (EU) 2018/1806 abolish their CBI schemes and reform their RBI schemes to bring them in line with Union law and standards and that the Commission submit, in 2022, on the basis of Article 77(2), point (a), TFEU, a proposal for an act that would amend Regulation (EU) 2018/1806 in that regard; requests that specific attention in that regard be paid to candidate countries and potential candidate countries, and proposes that it be included in the accession criteria;
Amendment 82 #
23. Requests that the Commission exert as much pressure as possible to ensure that third countries that have CBI/RBI schemes in place and that benefit from visa free travel under Annex II to Regulation (EU) 2018/1806
Amendment 83 #
Motion for a resolution Paragraph 24 24. Reminds the Commission
Amendment 84 #
Motion for a resolution Paragraph 25 Amendment 85 #
Motion for a resolution Annex I – subheading 1 Proposal 1:
Amendment 86 #
Motion for a resolution Annex I – indent 1 — A Union-wide notification and quota system for the maximum number of citizenships to be acquired under CBI schemes across the Member States should be established
Amendment 87 #
Motion for a resolution Annex I – indent 1 — A Union-wide notification and quota system, strictly applicable only for the existing programmes, for the maximum number of citizenships to be acquired under CBI schemes across the Member States should be established with the number to be gradually lowered each year, reaching zero in 2025, thereby leading to the complete phasing out of CBI schemes. Such a gradual phasing out will allow those Member States maintaining CBI schemes to find alternative means to attract investment and sustain their public finances. Such a phasing out is in line with the previous position of Parliament expressed in several resolutions and is necessary in light of the profound challenge that CBI schemes pose to the principle of sincere cooperation under the Treaties (Article 4(3) TEU).
Amendment 88 #
Motion for a resolution Annex I – indent 1 — A Union-wide
Amendment 89 #
Motion for a resolution Annex I – subheading 2 Proposal 2: a comprehensive
Amendment 9 #
Motion for a resolution Recital G G. Whereas the operation of CBI schemes without common rules leads to the unilateral commodification of Union citizenship; whereas such
Amendment 90 #
Proposal 2: a comprehensive regulation covering all CBI/RBI schemes in the Union
Amendment 91 #
Motion for a resolution Annex I – indent 3 — To address the specificities and widespread occurrence of CBI/RBI schemes across the Member States, a dedicated Union legal framework in the form of a regulation is necessary. Such a regulation will ensure Union harmonisation, limit the risks posed by CBI/RBI schemes and make CBI/RBI schemes subject to Union monitoring, thereby enhancing transparency and governance. The regulation is also meant to discourage Member States from establishing harmful CBI/RBI schemes.
Amendment 92 #
Motion for a resolution Annex I – indent 3 — To address the specificities and widespread occurrence of RBI schemes across the Member States, a dedicated
Amendment 93 #
Motion for a resolution Annex I – indent 4 — The
Amendment 94 #
Motion for a resolution Annex I – indent 4 — The regulation should contain Union-level standards and procedures for increased due diligence and rigorous background checks for applicants. A proposal for a regulation is more than warranted, especially in light of the fact that the Group of Experts on Investor Citizenship and Residence Schemes never made any progress as regards those elements. In particular, all applicants must be structurally crosschecked against all relevant national, Union (SIS, VIS, ECRIS-TCN, ETIAS) and international (Interpol) databases by the Member State authorities while respecting fundamental rights standards. There should also be an independent verification of documents submitted, a full background check of all police records and involvement in previous and current civil and criminal litigation, in- person interviews with the applicants and a thorough verification of how the applicant’s wealth was accumulated and its relation to the reported income. It should be allowed to extend time limits for the proper due diligence process and to annul positive decisions retroactively in cases of misrepresentation or fraud.
Amendment 95 #
Motion for a resolution Annex I – indent 4 — The regulation should contain Union-level standards and procedures for increased due diligence and rigorous background checks for applicants and their source of wealth. A proposal for a regulation is more than warranted, especially in light of the fact that the Group of Experts on Investor Citizenship and Residence Schemes never made any progress as regards those elements. In particular, all applicants must be structurally crosschecked against all relevant national, Union (SIS, VIS, ECRIS-TCN, ETIAS) and international (Interpol) databases by the Member State authorities. There should also be an independent verification of documents submitted, a full background check of all police records and involvement in previous and current civil and criminal litigation, in- person interviews with the applicants and a thorough verification of how the applicant’s wealth was accumulated and its relation to the reported income.
Amendment 96 #
Motion for a resolution Annex I – indent 5 — The practice of joint applications, where a main applicant and family members can be part of the same application, should be forbidden: only individual applications subject to individual and rigorous checks should be allowed, while taking into account the links between applicants. Rigorous checks should also apply when residency rights can be pursued by family members of successful applicants under family reunification rules or other similar provisions.
Amendment 97 #
Motion for a resolution Annex I – indent 6 – introductory part — An important element of the
Amendment 98 #
Motion for a resolution Annex I – indent 6 – point a (a) a Union-level licensing procedure for intermediaries containing a thorough procedure with due diligence and auditing of the intermediary company, its owners and its related companies should be considered. The license should be subject to renewal
Amendment 99 #
Motion for a resolution Annex I – indent 6 – point a (a) a Union-level licensing procedure for intermediaries containing a thorough procedure with due diligence and auditing of the intermediary company, its owners and its related companies. The license should be subject to renewal every second year and be featured in a public Union register for intermediaries. Where intermediaries are involved in applications, Member States should only be allowed to process such applications when prepared by Union-licensed intermediaries. Applications for licensing should be made to the Commission, to be supported by the relevant Union agencies
source: 702.999
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History
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