Vanuatu Tightens CBI: Act Now Before Rules Change!

If you come across an opportunity to get foreign citizenship, act quickly. We are not warning you out of the blue: in recent years, Montenegro, Moldova, Bulgaria, Comoros, and Cyprus have shut down their citizenship-by-investment programs. At the same time, St Kitts and Nevis, Antigua and Barbuda, Dominica, St Lucia, and Grenada have doubled their program fees. Now, even Vanuatu requires applicants to visit the country in person to be eligible.

The new requirement will certainly complicate things for potential Vanuatu CBI applicants. Care to learn about the reasons behind this change?

Personal visits now required for CBI applicants

The Vanuatu Citizenship Commission monitors the issuance of golden passports to foreigners. On August 7, 2024, it announced new rules to licensed immigration agents, demanding applicants to appear before immigration and passport officials for biometric data registration and facial recognition purposes.

This new requirement affects both current applicants and those whose CBI applications have already been approved.

From August 31, 2024, remote applications for Vanuatu citizenship will no longer be accepted. All applicants must visit Vanuatu in person to obtain their passports.

Finding balance between ICAO security standards and EU pressure

The main purpose of the personal visit requirement for Vanuatu passports is to align its legislation with the International Civil Aviation Organization (ICAO) security standards. As an ICAO member, Vanuatu must update its laws to meet these international requirements so that its citizens will face no issues when crossing borders.

A requirement to include electronic microchips in passports, which store the holder’s personal data, is part of these standards. Vanuatu passports now have these electronic chips with biometric information, which can only be collected during an in-person visit.

However, the push to comply with international standards isn’t the only reason behind the stricter rules. Vanuatu authorities’ decision came two months after the European Commission suggested that a temporary suspension of visa-free travel between Vanuatu and the Schengen zone be permanent. Originally, the suspension was put into effect two years ago.

The EC’s proposal, published on May 31, 2024, is still under review. In the meantime, the temporary suspension has been extended from August 3, 2024, to February 3, 2025. The visa sanctions were first imposed in May 2022 after EU officials concluded that Vanuatu’s economic citizenship program posed security risks to the EU and its member states.

The fact that one could obtain a Vanuatu passport remotely was deemed to be a significant risk. Soon, a visa suspension mechanism was put into place under Article 8 of the Visa Regulation.

What concerns the EU?

European officials raised several concerns regarding Vanuatu’s passport issuance practices:

High Numbers of Issued Passports: Over 10,000 foreigners received Vanuatu passports between 2015 and 2021. Many of them would otherwise need EU visas. The rejection rate for these applications was rather low.
Residency and Contact Requirements: Applicants were not required to reside in or visit Vanuatu or establish any personal contact with Vanuatu authorities.
Personal Interview Requirement: With no personal interviews, proper personal identification and verification of applicant information were quite a challenge.
Promotion of Economic Citizenship: The local CBI scheme was actively marketed as a means to bypass Schengen visa requirements and get visa-free access to the EU.
Fast Application Processing: The practice was deemed incompatible with thorough security checks and the collection of adequate background information from the applicants’ home countries.
Legislation on Name Changes: Weak regulations allowed applicants to easily change names in order to mask their true identities

European officials also pointed out that the OECD had classified Vanuatu as a high-risk country under the Common Reporting Standards (CRS) due to its numerous opportunities for tax evasion and money laundering.

The EU’s decision to suspend visa-free access to the Schengen zone for Vanuatu citizens greatly reduced the number of applicants for the Vanuatu CBI. Things got even worse after Great Britain, Ireland, and Switzerland joined the sanctions. Despite these challenges, it is way too early to say that the Vanuatu CIP has no immigration appeal any more. The program still brings money, particularly from applicants in sanctioned countries.

Vanuatu agents advocate for easier access as new biometric passport rules take effect

Licensed immigration agents in Vanuatu have highlighted that no biometric data in Vanuatu passports was a major concern for Brussels officials. The new regulation addresses the issue. Basically, it shows that Vanuatu’s CIP has high security standards.

Experts believe these measures will help Vanuatu restore its international status and regain visa-free access to the EU.

They emphasize that the new rules will create a genuine link between economic citizens and Vanuatu authorities, as personal meetings will now be required. Due to the absence of such a link, EU officials earlier pressured Moldova, Bulgaria, and Montenegro to end their citizenship-by-investment programs.

Another upside is that wealthy foreigners who will arrive in Vanuatu with their money are expected to give a push to Vanuatu’s tourism industry. Admittedly, it badly needs changes and better prospects.

Some analysts have highlighted potential issues with the personal visit requirement for Vanuatu citizenship. Many applicants will need visas to enter Vanuatu, and direct flights to the country are few, which makes travel challenging. Experts suggest that Vanuatu authorities should consider allowing biometric data submission in, say, Dubai or Hong Kong as this will simplify the process for potential citizens.

After receiving the letter from the authorities, many Vanuatu immigration agents contacted Citizenship Commission officers to schedule personal meetings. They wanted to discuss alternative traveling opportunities for those applicants who find it difficult to travel to Vanuatu. Several possibilities are being considered at the moment. In particular, applicants may potentially be allowed to pick up their passports from Vanuatu consulates in other countries. This option is already popular in some Caribbean states that also issue passports to foreign investors.

Need more info? Let International Wealth experts help!

Haven’t found the information you are looking for in the article? Don’t despair! International Wealth immigration experts are here to help. We will suggest the best citizenship-by-investment program for your needs and connect you with reliable immigration agents in your chosen country. Ask for a consultation on getting foreign citizenship and a second passport and you are one step closer to your cherished dream.