Cyprus is suspending a scheme that grants citizenship and guarantees visa-free travel throughout the EU for those who invest a minimum of \u20ac2m (\u00a31.8m). #eudebates #VISA #Cyprus #passports #GoldenVISA <\/p>\n
It comes after Al Jazeera reporters filmed Cypriot officials using the scheme to assist a fictional Chinese businessman with a criminal record.<\/p>\n
One of those filmed was Cyprus’s parliamentary speaker, Demetris Syllouris, who said he would step down until an investigation was completed.<\/p>\n
The move comes into force next month.<\/p>\n
Mr Syllouris, who is Cyprus’s second-highest ranking state official, said he would withdraw from his duties from 19 October.<\/p>\n
In the video footage captured by undercover Al Jazeera journalists and released on Monday, Mr Syllouris appears to offer his influence to assist in obtaining citizenship for the fictitious businessman.<\/p>\n
On Tuesday, Mr Syllouris released a statement apologising for “this unpleasant image conveyed to the Cypriot public… and any upset it may have caused”.<\/p>\n
His announcement came shortly after the government said it had approved a proposal to suspend the scheme – the citizenship for investment programme – following an emergency session on Tuesday.<\/p>\n
In a statement posted on Twitter, the office of Cypriot President Nicos Anastasiades said the proposal was put forward in response to “weaknesses” in the scheme that could be “exploited”. <\/p>\n
Cyprus, which joined the EU in 2004, currently provides passports to non-EU nationals who make sufficient investments in the country.<\/p>\n
Last November, it emerged that fugitive financier Jho Low – a central figure in the global scandal which saw billions of dollars go missing from the Malaysian state fund 1MDB – had obtained Cypriot citizenship in September 2015 and reportedly bought a \u20ac5m property in the Cypriot resort of Ayia Napa.<\/p>\n
Mr Low is wanted in the US, where prosecutors say he laundered billions through its financial system.<\/p>\n
Mr Low has denied any wrongdoing, and his current whereabouts are unknown, although there have been reports of him in various locations.<\/p>\n
Cyprus later revoked his “golden passport” and those bought by 25 foreign investors, including nine Russians, eight Cambodians and five Chinese.<\/p>\n
Last year, the EU Commission told EU states to tighten checks on non-EU nationals who acquired citizenship through investments. Malta and Bulgaria operate similar schemes to that of Cyprus.<\/p>\n
The commission said the programme could be abused and used for tax evasion and money-laundering.<\/p>\n
It added that applicants could acquire citizenship of Cyprus, Malta and Bulgaria – and hence EU citizenship – “without ever having resided in practice in the member state”.<\/p>\n
EU citizens can move easily throughout the bloc, as well as live and work in another member state without the bureaucratic hurdles that non-EU nationals face.<\/p>\n