Cyprus’s “golden passport” program is considered a corrupt free-for-all that gave kleptocrats, oligarchs, and criminals access to European citizenship.
From Putin crony Oleg Deripaska to fugitive Malaysian fraudster Jho Low of the infamous 1MDB scandal, Cyprus’s willingness to sell citizenship to unsavory people has been a black eye for the European Union as it ramps up anti-corruption efforts.
Cyprus stopped taking new applications last October following an Al Jazeera news undercover sting that caught politicians offering to help get a passport for a fictitious criminal from China. The EU has also moved to hold Cyprus accountable for its investor citizenship scheme through an “infringement procedure” that could potentially lead to financial penalties imposed by its Court of Justice.
While the Mediterranean nation has promised reforms, questions remain about corruption among its political class.
Some public officials and Cypriot media have pointed to the relationship between President Nicos Anastasiades –– whose family law firm was deeply involved in procuring golden passports for clients –– and Saudi businessman Abdulrahman bin Khalid bin Mahfouz, whose receipt of citizenship has been questioned by the Auditor General of Cyprus.
The Auditor General hasn’t accused anyone of criminal activity, but said the murky circumstances of the case warrant more investigation.
Cyprus approved 6,679 golden passports between 2008, when the program began, and August 2020. This includes around 3,100 primary applicants, as well as their spouses, children, and parents. In total, the country raised at least 6.6 billion euros through the program, according to figures from the Ministry of Finance.
In June, former Supreme Court Chairman Myron Nikolatos released a report on the program. He found that in over 53 percent of cases, the law had been violated when granting golden passports, especially when it came to secondary applicants.
Source: OCCRP, August 9th, 2021. Entire article available at – https://www.occrp.org/en/investigations/the-golden-friends-and-neighbors-of-cypriot-president-nicos-anastasiades