Vanuatu’s Citizenship Program: A Safe Haven for the Legally Troubled?

Vanuatu’s Citizenship by Investment program is attracting individuals facing legal issues, including Lalit Modi. Modi’s acquisition of citizenship has sparked concerns regarding legal proceedings in India. The program is economically important for Vanuatu, generating 40% of its national revenue, yet faces criticism over security risks and potential misuse by criminal groups.

Recent reports indicate that Vanuatu has become increasingly notable as a potential refuge for individuals facing legal challenges, exemplified by the case of Lalit Modi. The former chairman of the Indian Premier League (IPL) has reportedly acquired citizenship in Vanuatu, prompting actions from the Indian Ministry of External Affairs (MEA). MEA spokesperson Randhir Jaiswal confirmed the ministry’s awareness of Modi’s application to surrender his Indian passport and reasserted ongoing legal proceedings against him.

Lalit Modi faces serious allegations, including financial misconduct and violations of the Foreign Exchange Management Act. Accusations against him involve bid-rigging and money laundering, leading him to leave India in 2010 amid investigations related to unauthorized fund transfers. His acquisition of Vanuatu citizenship raises significant questions about the implications of such a move.

Vanuatu’s Citizenship by Investment program, commonly referred to as the ‘golden passport’ scheme, allows individuals to obtain citizenship through financial contributions. With a minimum investment of USD 150,000, applicants can achieve citizenship within one month, often without the requirement to visit the island nation. Currently, a Vanuatu passport offers visa-free access to 113 countries, ranking it 51st on the Henley Passport Index, though it has lost visa-free entry to the European Union due to security concerns.

The economic impact of the Citizenship by Investment program is substantial for Vanuatu, accounting for nearly 40% of the nation’s revenue. Given its population of over 300,000 and a per capita GDP of approximately USD 3,515.2, the program is a vital aspect of Vanuatu’s economy. The demand for passports surged during the Covid-19 pandemic, contributing to a budget surplus in 2021.

Interest in Vanuatu citizenship among Indians and non-resident Indians (NRIs) has increased significantly, with at least 30 Indians obtaining passports in recent years. Many view this citizenship as a strategic measure to circumvent potential legal issues in India, particularly appealing to those living abroad who wish to secure family citizenship. Some also see this program as a gateway to more powerful passports from countries such as Malta or Cyprus.

However, the program has faced criticism due to concerns of misuse by criminal entities and insufficient background checks. Global authorities have raised alarms concerning the potential for the program to serve as a gateway to the UK and the EU, contributing to security threats. The European Union’s decision to permanently revoke Vanuatu’s visa-free access highlights these ongoing issues, as the scheme grapples with a balance between economic benefits and regulatory scrutiny.

In conclusion, Vanuatu’s citizenship program has emerged as a controversial yet economically significant strategy for both aspiring citizens and the nation itself. While attracting individuals like Lalit Modi seeking refuge from legal troubles, it simultaneously raises security concerns and questions regarding proper oversight. The balance between facilitating investment and ensuring thorough vetting remains a critical challenge for Vanuatu as it navigates the implications of its growing ‘golden passport’ scheme.

Original Source: english.mathrubhumi.com