In response to an audit report, the Cyprus Golden Visa Program will implement stricter approval checks, requiring annual data submissions and criminal record checks every three years. The heightened controls aim to prevent abuses within the program, reinforcing the government's commitment to responsible governance and enhancing the program's integrity amid revelations of illicit activities.

Cyprus Ministry of the Interior's Response to Golden Visa Audit Report

The Cyprus Ministry of the Interior agrees with audit recommendations for the Golden Visa Program, emphasising strengthened controls. While not addressing the suggested termination, the Ministry commits to improving services and acknowledges identified program weaknesses. 

• Acknowledged Recommendations: The Ministry aligns with the audit report's recommendations, emphasising a commitment to fortify controls and uphold the integrity of the Golden Visa Program.

• Uncertain Scheme Termination: No official Ministry comment on the suggested scheme termination leaves the program's fate uncertain, introducing an element of ambiguity.

• Proactive Governance: The Ministry highlights proactive efforts to streamline the program and address identified weaknesses, showcasing a dedication to robust governance.

• Awareness of Program Weaknesses: Acknowledging findings aligning with identified weaknesses, the Ministry demonstrates awareness of potential abuses within the Golden Visa Program.

• Revised Criteria Implementation: Recent cabinet decisions in May introduce revised criteria, emphasising a commitment to program streamlining. Mandatory annual data submission ensures ongoing compliance with investment and income requirements.

• Accountability Measures: Non-compliance consequences, including immigration permit cancellation for the applicant and their family, underscore the Ministry's commitment to accountability and program integrity.

Revised Criteria and Stricter Controls

Cyprus has fortified its Golden Visa Program by implementing measures such as a three-yearly criminal record check, stringent proof requirements for investment funds, and intensified continuous screening. These changes are geared towards enhancing program credibility, ensuring ongoing monitoring, and enforcing accountability.

• Three-Yearly Criminal Record Checks: Investors now undergo a criminal record check every three years, enhancing the program's ability to identify disqualifying offences over time compared to a single check at the application stage.

• Strict Proof of Investment Funds: Revised criteria demand robust evidence that investment funds come solely from the main applicant and spouse, eliminating loopholes related to third-party funding.

• Tighter Continuous Screening: Enhanced continuous screening of existing visa holders is in place, allowing authorities to take immediate action for any violations of program rules or laws, ensuring real accountability beyond the initial qualification stage.

• Holistic Monitoring and Enforcement: Cyprus has fundamentally upgraded integrity mechanisms for the Golden Visa Program, combining recurring background verification, stringent proof requirements, and continuous screening for comprehensive monitoring and enforcement.

Audit Service's Revelations and Government Response

The Audit Service's investigation exposed the involvement of the Golden Visa Program in illicit activities, revealing that 5,800 individuals had benefited from the scheme after investing in it. 

Critically, the audit found lapses in regular controls post-residence permit issuance and highlighted instances where permits were granted based on investments made by relatives. 

The Ministry's proactive measures, including revised criteria and intensified controls, aim to address these concerns and enhance the integrity of the Golden Visa Program. While the audit service recommended termination, the Ministry is focused on reforming and safeguarding the program against abuse and illicit activities.

Cyprus Golden Visa and Passport Programs

Cyprus stands out as a leading destination for global individuals pursuing alternative residency or citizenship through the Golden Visa and Golden Passport programs. These initiatives, characterised by customised investment pathways, appeal to high net worth individuals seeking permanent residency or full citizenship by making significant investments in real estate, financial instruments, or prescribed donations.

• Cyprus Golden Visa: Affluent individuals can secure permanent residency through the flexible investment options provided by the Golden Visa program, encompassing real estate and financial instruments based on individual circumstances.

• Golden Passport Program: Cyprus's Golden Passport program grants full citizenship to those making substantial investments in approved vehicles, offering passport holders extensive rights and travel access—a compelling choice for citizenship through capital infusion.

• Tailored Investment Opportunities: Both programs present structured investment opportunities, including real estate acquisitions, financial deposits, or prescribed donations. This adaptability accommodates diverse preferences and financial capacities of potential participants.

• Ongoing Demand Despite Ethics Overhauls: Despite recent ethical adjustments, these programs continue to experience high demand, underscoring Cyprus's enduring attractiveness among the global affluent class for mobility, tax optimization, and crisis contingency planning.

• Foreign Capital Influx: Cyprus's strategic initiatives effectively draw substantial foreign capital from the global affluent, fostering economic growth. These individuals, in pursuit of mobility freedom and financial planning options, significantly contribute to the country's economic landscape through their investments and active program participation. 

Abolishment of Cyprus' Golden Passport Scheme

Despite early popularity, the Cyprus Golden Passport program enabling visa-free EU access and citizenship rights to wealthy investors has been discontinued following alarming revelations of widespread abuses like money laundering by nefarious applicants.

Specifically, the exposé documentary "Cyprus Papers" highlighted how program due diligence deficiencies and loose requirements failed to prevent criminals from essentially buying EU passports via Cyprus to enable illicit financial flows and evade taxes with relative anonymity. 

Additionally, the reports revealed corrupt government officials actively facilitating passport awards to ineligible individuals through various illegal technical methods in exchange for sizable kickbacks.

Essentially, with EU/international pressure building and overwhelming evidence of the scheme's exploitation by money launderers, tax evaders, and corrupt agents documented by whistleblowers and journalists, Cypriot authorities opted for total abolishment given extreme liability and reputational risks.

The complete termination of the passport investment program occurred once the breadth of associated financial crimes and ethical breaches came to light rather than attempted remediation - being wholly beyond salvage.

 FAQS

Why is the Cyprus Golden Visa Program undergoing stricter checks?

The Cyprus Golden Visa Program is implementing stricter checks following Interior Ministry approval in response to concerns raised by an audit report. The aim is to enhance the program's integrity and address potential abuses, as revealed by recent investigations.

What are the key revisions in the program's criteria?

The revised criteria include a mandatory submission of a clean criminal record from the investor's country of origin every three years. Additionally, applicants must provide evidence that investment funds exclusively come from themselves and their spouse, eliminating third-party involvement to prevent potential abuses.

How will intensified controls be applied in the program?

The Ministry of the Interior has introduced intensified controls on program beneficiaries. Rigorous monitoring will be conducted to detect any violations, and in cases where irregularities are found, the Ministry has the authority to revoke visas. This measure underscores the commitment to responsible governance and program integrity.

What prompted the government's approval of these stricter measures?

The approval of stricter checks by the Interior Ministry follows an audit report that revealed concerns about the program's susceptibility to illicit activities. The government is proactively responding to these findings to ensure the program operates with transparency and in compliance with established guidelines.

How do the new measures impact Golden Visa applicants?

Golden Visa applicants are now required to adhere to more stringent checks, providing updated criminal records every three years and proving the exclusive origin of their investment funds. These measures are designed to maintain the credibility of the program and prevent any potential misuse or illegal activities.