EU Inches Closer to Suspension of Visa-Free Access to Schengen Region for CBI Program Countries

For more than ten years citizens of Dominica have enjoyed visa free access into the 29 countries that make up the Schengen Region. This fact has been a key factor in the over 50 000 non-Dominican nationals who have successful obtained citizenship through the country’s Citizenship By Investment (CBI) program. However, this could all soon end.

The EU has signaled that visa free access may very soon be a thing of the past. In a stunning reversal of its previous policy stance, the EU has announced the existence of CBI programs “in itself” may now constitute grounds for suspending visa-free travel to the Schengen area.

This position goes far beyond previous guidelines issued on possible visa suspension. Earlier this year the EU strengthened the rules that governed how it can suspend visa free access for citizens of non-EU countries. The mechanism gave EU institutions more flexibility to act quickly if they determined a partner country poses security or policy issues.

In such cases countries could examine whether CBI programs posed a security, money laundering or other threats to their country. This has now been abandoned with the EU going a step further and recommending that just having these programs are sufficient grounds to suspend visa-free travel.

In its 8th annual 8th Report under the Visa Suspension Mechanism the Commission is characterizing any CBI operation by visa-free nations as an inherent security threat.

“Investor citizenship schemes operated by visa-free countries pose security risks, as they may allow third-country nationals who would normally require a visa to bypass standard checks and obtain Schengen access through purchased citizenship. 

“Schemes in five Eastern Caribbean states continue to raise concerns due to high volumes, short processing times and low rejection rates, despite some steps taken to strengthen due diligence and information-sharing.

“Consequently, under the revised Visa Suspension Mechanism, the operation of such programmes constitutes, in itself, a ground for suspending the visa-free status of third countries,” according to the Report.

“The operation of investor citizenship schemes by visa-free countries poses a non-negligible security risk for the Schengen area and will be further examined under the revised Visa Suspension Mechanism legal framework.”

In its recommendation to the countries of Antigua, Dominica, St Lucia, Grenada and St Kitts and Nevis, the Commission has hinted that only a complete suspension of the program could prevent visa restrictions.

“The operation of a scheme, whereby citizenship is granted in exchange for pre-determined payments or investments, without the person concerned having any genuine link to that third country, constitutes a potential ground for the suspension of visa-free travel under the revised Visa Suspension Mechanism.

“Concerned Eastern Caribbean countries should take all measures necessary for adequate security vetting of applicants, pending the discontinuation of those schemes.”