Malta government reacts on TI’s report on Golden Visas: It contains inaccurate elements

The government of Malta has reacted to the report on Golden visas published recently by Transparency International and Global Witness.

Through a press statement, the Government of Malta has responded to the report called “European Getaway – Inside the Murky World of Golden Visas,” claiming it contains elements “which do not seem to be accurate or adequately researched.”

“In the report, there are elements with which Government, through the Malta Individual Investor Programme Agency (MIIPA), agrees and support, and others which do not seem to be accurate or adequately researched,” the press release reads, further listing and arguing these elements.

In the statement, Malta Individual Investor Programme Agency, responsible for the Golden Visa Investment Scheme in Malta, agree with some of the points in the report, however objecting others, while claiming that the authors of the report have not taken into consideration their feedback.

“The report contradicts itself when it states that there is a lack of transparency and accountability in the IIP, as itself mentions the review and recommendations by a Regulator. The level of statistical information that is produced on a yearly basis in the Regulator’s report also seems to have gone unnoticed in this report. On the other hand, there are some claims in the report which could have easily been clarified should the authors have taken into consideration our feedback,” the statement points out.

The statement also points out that Malta has the highest rejection rate of all programmes, at around 25% compared to only 10% of other jurisdictions, claiming such fact has gone unnoticed by the writers of the report.

It also brings up the issue of the physical presence requirement to get a Golden Visa, claiming the report is wrong “as Malta never clarified that no physical presence is required.”

The statement goes on to explain the allocation of the income generated from the Golden Visa scheme, which is the first four years of the program was around €700 million.

“Very recently, the Prime Minister also announced plans regarding a €50 million investment for the building of around 500 social housing units, over and above the current 680-apartment social housing project already started on a number of different sites for a total investment of €108 million,” it explains among others.

“Most of the recommendations are already in place for the Malta programme”

The Maltese Parliamentary Secretary for Reforms, Citizenship and Simplification of Administrative Processes Julia Farrugia Portelli has also reacted to the report, through a tweet, claiming Malta is already implementing most of the recommendations.

“Whilst agreeing with TI’s call for more standardization & information sharing on rejected RCBI (Resident/Citizen by Investment) applicants, Malta notes that it is already implementing most of the recommendations included in the report,” she wrote on the social network.

The statement issued by the Government of Malta, also insists that Malta is already implementing most of the recommendations. Moreover, it claims that “these suggestions seem to have been taken from the IIP and recommendations that Malta has been making in dedicated for a”. According to the government, some of the suggestions that are already being implemented, are as following:

• All applicants and their family members are subject to enhanced due diligence
• All documents are checked by the Malta Government Agency
• Checks on wealth are carried by the government
• Pending court cases are also taken into consideration
• Criminal charges lead to the rejection of the application
• An independent regulator oversees the running of the programme and receives complaints
• Malta also has the necessary mechanism to revoke citizenship gained through the investment program

Last week anti-corruption organizations Transparency International and Global Witness published a report called “European Getaway: Inside the Murky World of Golden Visas” which highlights the risks arising from insufficient diligence, conflicts of interest, and wide discretionary powers in the citizenship- and residency-by-investment schemes. The report focuses on the programs offered by Cyprus, Malta and Portugal in particular.

The report also warns the EU on visa-free regime with Caribbean countries offering passports for sale, in the light of the risks coming from admitting the corrupt and the criminal into Europe.