The European Commission has proposed suspending visa-free travel to Pacific country Vanuatu due to a citizenship-by-investment regime, similar to the one Albania wanted to introduce.

While the Commission has long frowned on the programs over fears of money laundering, sanctions-busting and other abuses, this is the first time the EU has decided to impose sanctions on a country for implementing place such a program.

“The Commission has concluded that Vanuatu’s investor citizenship programs have serious flaws and security flaws,” it said in a statement.

Under the Vanuatu scheme, in exchange for $130,000, individuals can obtain a passport that gives them visa-free access to the EU. The Commission, in its proposal, suggested suspending visa-free travel for anyone holding a Vanuatu passport since May 2015 when the scheme was launched.

The Commission has raised concerns as there have been instances where new citizens have not been properly screened, including even some who were on Interpol’s lists. In turn, these people can enter the EU without verification or control.

In addition, the Commission said it was keeping tabs on countries that benefit from visa-free travel to the EU and have or are considering similar schemes. This includes Albania.

In November 2019, Exit revealed how Prime Minister Edi Rama, despite knowing full well that the EU and EC would not agree, said he would start selling Albanian citizenship to wealthy investors.

He attended the Global Citizenship Conference in London, and a video seen by Exit of the private event saw him make the announcement while making jokes about the country’s isolation during communism.

Rama to sell Albanian citizenship in ‘fantastically corrupt’ cash-for-passport scheme

During his speech, Rama said, “I know there are controversies surrounding this program,” adding, “I know that when I return home, I will receive an alert from the European Union about this. , but I strongly believe that is what we have. To do.”

During Rama’s speech, he joked that “once upon a time we were proud to be the only country in the world that didn’t allow anyone in or out” and made several jokes about communism and various dictators. He claimed that Albania has the strongest growth in the region and that although it is “risky”, it is something “we have to do”.

The event was organized by Henley and Partners, cash for passport dealers who have created and administered several such programs around the world.

The EU reacted strongly to the news and nothing more was heard of the plan.

Exit also revealed last year that fugitive Indian brothers Sandesara, accused of embezzlement in India, were granted Albanian citizenship under mysterious circumstances in 2018.

They had previously been clients of Henley and Partners and tried to acquire citizenship in other countries before settling in Albanian.

The brothers were declared wanted by Indian authorities in 2017 on suspicion of defrauding banks of nearly $1 billion. Interpol Red Notices have been issued in their name and extradition orders have reportedly been filed by the Indian government in Nigeria and Albania.

In November 2016, they engaged Henley and Partners, an international cash-for-passports dealer, to do a background check, as confirmed by the existence of a large selection of documents. The two brothers then tried to apply for various passports, including Antigua and Barbuda, Grenada and Cyprus.

Documents seen by Exit news, which include invoices, payments, deposits, correspondence and due diligence documents, show that this relationship continued at least until September 2017.

They failed in their attempts to obtain citizenship, likely due to bad press surrounding the fraud and extradition orders against them.

Then, in February and March 2017, executives from Henley and Partners visited Albania twice. First, Group CEO Steffen Juerg visited us on February 3, and then Stefan Krauss COO on February 27. It is unclear what the purpose of their visit was.

Then at the end of 2018, the Sandesaras obtained Albanian citizenship while being officially on the run. This happened without any due process or following the rules. Also, it shouldn’t have been possible given the warrants against them.

The brothers have pledged to invest at least $33 million in property development, including apartments near the artificial lake and other properties in Dhermi.

Henley and Partners vigorously deny acquiring citizenship for the Sandesara brothers, you can read their full statement here.

Sandesara fugitives were Henley & Partners clients before mysteriously granted Albanian citizenship