Countries that provide citizenship by investment schemes attract money and capital, but they also increase the risk of financial fraud, money laundering, and crime. This has forced countries and regulators to implement strict due diligence procedures to ensure only trustworthy investors receive citizenship.
Investor and high-net-worth applications must be thoroughly inspected to reduce security, financial crime, and reputational risk. This guide highlights due diligence in citizenship by investing.
Due Diligence in CBI
Due diligence is a must for CBI. Before awarding citizenship or residency, an investment or applicant’s economic, legal, fiscal, and financial position must be thoroughly researched. It aims to prevent theft, money laundering, and embezzlement by ensuring applicants are safe additions to any country and have no criminal record. Caribbean states offering CBI conduct extensive due research on investors and their families seeking alternate citizenship.
Due Diligence Basics
The longest phase of any residency or citizenship by investment program is due diligence. Multiple parties and months are needed to cover application background details. The applicant’s identification documents, bank account numbers, and statements are required in order to evaluate if they can afford citizenship through investment programs and future charges. Hidden liabilities, corporate conduct, and reputation history are examined. Countries check applicants’ education, jobs, licenses, credentials, awards, personal references, and criminal history for security hazards. This may entail database searches and Interpol and FBI intelligence.
Why is Diligence Important?
To thrive, citizenship or residence by investment programs need comprehensive, multi-layered, and high-level due diligence. Internal government checks, third-party research, and regional and international assessments are used in this process. Proper due diligence protects the nation, its people, and the program’s and its partners’ reputations. Governments that ignore due diligence could tarnish the host country’s reputation and discontinue its citizenship program early. The government must guarantee newcomers are safe and responsible before integrating them. All successful CBI programs recognize that due diligence is crucial to their reputation and popularity.
Hard-working entrepreneurs seeking protection, security, and a secure haven for their families and business growth apply for CBI programs. Therefore, document fraud and forgery are rare. Criminals seeking second citizenship to evade prosecution in a country may find it difficult. The method allows third-party agents to cross-reference numerous databases and physical documents, detecting these candidates. This approach prevents offenders from joining the community and protects the country and its new citizens.
Due Diligence Scores
The CBI Index 2022 gives Dominica, Grenada, Malta, St Kitts and Nevis flawless Due Diligence Pillar scores due to their strict and comprehensive regulations. These countries need fingerprints for biometric passports and strict external due diligence. This includes on-the-ground checks and cooperation from international law enforcement agencies, police certificates from the applicant’s home and citizenship countries, extra due diligence on specific nationalities, and complete fund-source information. St Lucia, Antigua and Barbuda, and Montenegro scored nine each.
Based on careful diligence, citizenship petitions without “red flags” are granted to those who can afford citizenship by investment Portugal. Due diligence expenses vary in every CBI program, starting at $5,000 and rising. Learn properly about citizenship by investing due diligence before you take a step forward.