分类: kenneth camilleri

Auto Added by WPeMatico

The Stringent Eligibility Criteria For Malta’s Citizenship For Exceptional Services by Direct Investment

 

The eligibility criteria for the recently announced legislation, the Granting of Citizenship for Exceptional Services by Direct Investment (CDI), include several requirements for foreign nationals. As stipulated by Legal Notice 437 of 2020, the new regulations allow for, following a residence period, the granting of citizenship by naturalisation to foreign individuals and their families who contribute to the economic development of Malta and can prove they meet the stringent tests for eligibility.

These eligibility tests require the applicants to prove that they and their family members are ‘fit and proper’ to acquire Maltese Citizenship, demonstrate they are in good health, and that dependant family members are wholly supported by the main applicant. The main applicant must be at least 18 years of age to apply and be of good conduct. 

Fit and Proper

The assessment of whether an individual is fit and proper is based on a number of due diligence checks carried out by both the licensed agent and the Community Malta Agency (CMA), the responsible governing authority. 

A clean police conduct certificate is required from the countries where the applicants have resided for at least six months during the last 10 years and from every country of citizenship. Such certificates must be issued from the national law enforcement authority in charge of criminal records in that country. The certificate needs to report the status of the applicant’s criminal record and is required for applicants over 16 years of age. This is diligently verified by the authorities with international records as part of the verification process or eligibility assessment.

Applicants and any of their dependants are deemed not ‘fit and proper’ if:

  • Any members have been indicted of an offence before an International Criminal Court or have been arraigned at any time before such court;
  • Are listed with the International Criminal Police Organisation (Interpol) or Europol;
  • Deemed to be involved in any activity which may cause disrepute to Malta;
  • Are listed in international sanctions that apply restrictive measures on them, that Malta follows; 
  • Is an actual or potential threat to the national security of Malta; and
  • Has been charged or found guilty of terrorism, money laundering, funding of terrorism, war crimes, and crimes against humanity.

Furthermore, applicants and their dependants must not have been charged or found guilty of crimes including, but not limited to, defilement of minors, rape, paedophilia, indecent violent assault, inducing underage persons to prostitution and abduction. 

Applicants are deemed ineligible to apply if any member of the application has been denied a visa to a country with whom Malta has visa-free travel arrangements and has subsequently not obtained a visa from that country. 

Good Health

Applicants and their dependant family members must demonstrate that they do not have a contagious disease or significant health condition. A declaration attesting to their good health must be certified by a competent medical body and state that they are not likely to become a burden on the Maltese public health system.

Financially Dependant Members

The spouse and children under 18 years of age may be included in the application as dependants.

In order for other family members to be included in an application for Citizenship for Exceptional Services by Direct Investment (CDI) they must demonstrate they rely financially on the main applicant, form part of the main applicant’s household and meet the criteria below. Such family members include: 

  • An unmarried, adult child of the main applicant or spouse who has attained the age of 18 but not yet 29 years at the time the eligibility for citizenship application is submitted;
  • A parent or grandparent of the main applicant or spouse who is at least 55 years of age at the time the eligibility for citizenship application is submitted; and
  • An adult child of the main applicant or spouse who is a qualified person with a disability as defined in the Equal Opportunities (person with Disability) Act.

The Granting of Citizenship for Exceptional Services by Direct Investment requires the applicant to reside in Malta for a period of three years, or by exception, one year. There are three main investment requirements that constitute the exceptional direct investment. These include: the purchase of residential real estate for a minimum of €700,000 euro or renting a property for €16,000 annually for a period of five years. Make a capital transfer of €600,000, or €750,000 in the case of a one year residency period, and €50,000 for each dependant. The third investment requirement is to donate €10,000 to a recognised charitable organisation approved by the Community Malta Agency.

More From Europe

Post Grid lazy load

Eligibility standards for Malta’s new investor naturalization policy are among the most stringent in the market. Kenneth Camilleri explains.

Istanbul’s property market works in predictable cycles created by a two-party system of local politics, writes İsrafil Kahraman.

Dolfin Financial, which once managed GBP 1.3 billion on behalf of clients, has filed for special administration in the city’s High Court.

 

The post The Stringent Eligibility Criteria For Malta’s Citizenship For Exceptional Services by Direct Investment appeared first on Investment Migration Insider.

Understanding Malta’s New Due Diligence Process – The 7-Step Risk Matrix

 

Malta has introduced a Risk Matrix as part of its rigorous due diligence process on applications for the newly announced regulations for the Granting of Citizenship for Exceptional Services by Direct Investment (CDI) as per Legal Notice 437 of 2020. 

The Community Malta Agency (CMA) is responsible for carrying out the due diligence and verification process of each applicant, who will now undergo additional due diligence checks.

The due diligence comprises a four-tiered due diligence assessment and an internal assessment using a Risk Matrix developed by the Agency.  

The CMA has introduced this additional internal risk matrix to ensure the appropriate risk weighting has been carried out following the four-tiered assessment. The risk matrix comprises seven categories to further scrutinise applications as illustrated below. 

According to the CMA, the risk matrix has been designed to not only ensure applicants are thoroughly examined, but to ensure applications are assessed consistently, systematically, and transparently. This way all applications are treated and handled in the same manner, thereby eliminating any room for negotiation and ad hoc decisions. 

Furthermore, details from all applicants are also submitted to the Financial Intelligence and Analysis Unit (FIAU) for full transparency.

Risk Matrix – The 7 Categories

1.Identification & Verification Analyses how the identity of the applicants has been established and verified including checks on all the countries resided in by the applicants in the 10 years prior to the application. 
2.Business & Corporate Affiliations Analyses the Applicant’s business and corporate affiliations including ties with offshore activity, jurisdictions and industries.
3.Politically Exposed Persons (PEPs) Analyses whether applicants are politically exposed persons (PEPs), on watch lists or have sanctions against them.
4.Source of Funds & Source of Wealth Analyses how applicants’ have accumulated their wealth and the source of funds used for the application.  Focus is placed on scrutinising detailed documented evidence in: bank statements, articles of association, share registers, certificates of incorporation, certified copies of contracts, and transactions.
5.Reputation The applicants’ reputation is taken into account assessing  on- the-ground and open-source intelligence (OSINT) and reports.
6.Legal & Regulatory Matters Analyses risk factors based on any charges or convictions for criminal or civil offences of the applicant.
7.Relative Impact on the Main Applicant’s Immediate Network Analyses the activities and relative impact on the immediate network of the applicant and within society. It includes any incidental area not covered in the other six categories. 

Throughout the due diligence process, if further information is required at any given stage, the CMA will seek additional clarifications. Once the findings of each assessment are finalised these will be presented to the Minister on the eligibility for citizenship.

The CMA continues to monitor the successful applicant for five years.

More Policy Updates

The new regulations would, at once, both make the MRVP more economical for the applicant and more profitable for the government of Malta.

An unexpected turn of events in light of the bipartisan consensus in favor of continued publication that emerged in Malta some two years ago.

A transition period that will see the exclusion of metropolitan and coastal areas from the program will begin on July 1st next year.

 

Our readers are the best-informed professionals in the investment migration industry.
Once a week, we’ll send you a curated newsletter with the week’s top stories.

Want updates every day?
Be the first in your company to know about breaking investment migration news; Get the most important stories delivered.

The post Understanding Malta’s New Due Diligence Process – The 7-Step Risk Matrix appeared first on Investment Migration Insider.