YEARBOOK 2018/2019 IMINVESTMENT - RCBI: Redefining Global Mobility - Investment Migration Council
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YEARBOOK
IM INVESTMENT
MIGRATION
2018/2019
RCBI:
Redefining
Global
Mobility
1st
Edition
IN ASSOCIATION WITH
(1) Contingent upon satisfying the requirements of the United States Immigrant Investor Program administered by the USCIS, as set forth in Code of Federal Regulations. See 8 CFR Section 204.6. (2) Data applies solely to the ERY Tenant and HY Manhattan Tower projects. All information based on data available as of May 2018. Securities services are provided by Related Financial Services, LLC, a subsidiary of the Related Companies and a member of FINRA and SIPC. EB-5 presentations are open only to persons who provide satisfactory verification to Related of their status as “accredited investors” under the U.S. federal securities laws. Offers will be made to accredited investors only by private placement memorandum of one or more entities affiliated with Related. This announcement does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make such offer, sale or solicitation. Past performance is not indicative of future results.
TM
UNITED STATES
IMMIGRANT INVESTOR PROGRAM
OPERATED BY RELATED COMPANIES, ONE OF THE LARGEST
PRIVATELY-HELD REAL ESTATE DEVELOPERS IN THE U.S.
• Invest in Real Estate Development and receive U.S. Permanent Residency(1)
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CITIZENSHIP WITH INTEGRITY.
IM INVESTMENT MIGRATION YEARBOOK 2018/2019
Meet the Team
YEARBOOK
IM INVESTMENT
MIGRATION
2018/2019
RCBI:
Redefining
Global
Mobility
Garvan Keating
Chief Executive Officer
keating@countryprofiler.com
1st
Edition
IN ASSOCIATION WITH
Chris Munz
Senior Manager – Special Projects
munz@countryprofiler.com
CountryProfiler Ltd is a specialist publisher of country information that assists
IN ASSOCIATION WITH
corporations managing operations across national borders with trade, investment
and relocation decisions. CountryProfiler is recognised by senior business
executives, government representatives, institutions and global organisations as a
leading provider of informative, insightful and actionable country intelligence.
Europe
64, St Anne Court, Suite 2, Bisazza Street,
Edition
1st
Sliema SLM 1642 - Malta Sonja Lindenberg
T: +356 2034 2034 Editor
lindenberg@countryprofiler.com
Mobility North America
Global
Suite 21-2123, Walkers Line,
Redefining
Burlington,
RCBI: Ontario L7M 4Z9 - Canada
IM Email: info@countryprofiler.com
MIGRATION
Website: www.countryprofiler.com
INVESTMENT
2018/2019
ResearchYEARBOOK
and Contributions
CountryProfiler staff
Melissa Puglisevich
Printing Office Manager
Gutenberg Press, Malta puglisevich@countryprofiler.com
Publication Date
June 2018
ISBN
978-99957-1-288-4
All rights reserved. Reproduction in whole or part is strictly prohibited without the
written permission of the publisher. Opinions expressed in IM Yearbook are not
necessarily those of the editor or publisher. All reasonable care is taken to ensure Ramon Micallef
truth and accuracy, but the editor and publisher cannot be held responsible for Art Director
errors or omissions in articles, advertising, photographs, or illustrations. ram@box-design.net
4
Enhanced Due Diligence for the CBI/RBI Industry
Exiger is a global leader in providing enhanced and automated
due diligence, consulting and application process management
solutions to the world’s largest and fastest growing
global CBI and RBI programs.
Exiger’s AI-powered automated due diligence
solution, DDIQ and applicant managment solution,
Exiger Insight AMS are transforming the way that
CIUs and RIUs manage applicants and agents.
Contact Karen Kelly at kakelly@exiger.com
to find out more.
exiger.com
IM INVESTMENT MIGRATION YEARBOOK 2018/2019
Contents
8 The World of
Investment Migration 28 The Importance
of Due Diligence: 35 InRealit forEstate Investing:
the Long Run 60 Evolving Industry:
Moving Along the
Lessons from Malta Interview: Liam Lifecycle Curve
12 Industry
Profile
Interview: Jonathan
Cardona, CEO of the
Bailey, Global
Head of Research
Daniel Huber, Group
Head of Agent Services
Malta Individual at Knight Frank at Henley & Partners
18 Developing Investor Programme
Professional
Standards for a
Agency
36 Start
Stop Pitching and
Engaging 61 Avoiding the
Immigration Backlog
Growing Industry
Interview: Bruno 30 The Big Read:
Sacred Citizenship:
with the Media
Interview: Markus
H. Ronald Klasko,
Managing Partner of
L’ecuyer, Chief Its Hypocrisy, its Kramer, Partner at Klasko Immigration
Executive of Randomness, its Price Brand Affairs Law Partners
the Investment Dimitry Kochenov
Migration Council
38 Trends 62 Key Piece
32 Interview: Nadine
A Testing Period & Topics of Advice
22 Consolidation will
Drive Industry Goldfoot, Partner
68 Business
Who’s Who:
Forward
Interview: Dr Christian
at Fragomen
48 Greater
Paving the Way for
Due Diligence
Directory
H. Kälin, Group
Chairman and CEO 34 AClient:
New Breed of
Winning
Cooperation
Roundtable Discussion 76 Calendar
Events
of Henley & Partners Millennials
Interview: Eric Major,
58 Maintaining
26 My Borders are
Your Borders
Founding Partner of
Latitude Residency
Legitimacy
Bruno L’ecuyer,
Interview: Allen & Citizenship Chief Executive
Chastanet, Prime of the Investment
Minister of Saint Lucia Migration Council
6
Malta Attracting Talent and Trustworthy Investment Malta harbours the perfect ambiance to relocate your business or settle down with your family in a stable and prosperous country. We offer a prestigious citizenship-by-investment programme that enables you to broaden your horizons and expand your business opportunities. All applicants undergo a strong and rigorous due diligence process to ensure that Malta attracts only reputable individuals. Safeguarding our standing as a sound jurisdiction and a trustworthy investment destination remains our top priority. www.iip.gov.mt
IM INVESTMENT MIGRATION YEARBOOK 2018/2019
The World of AmericaS & Caribbean
Antigua & Barbuda
Africa
Botswana
Investment
Argentina Guinea Bissau
Aruba Mauritius
Bahamas Seychelles
Barbados South Africa
Migration
Belize
Brazil
Canada
Cayman Islands
Chile
Costa Rica
The Rise of Citizenship by Investment Ecuador
Citizenship-by-investment (CBI) programmes Grenada
find their roots in the Caribbean island nation Guatemala
of St Kitts and Nevis, which was the first country Honduras
in the world to establish a citizenship-by-invest- Montserrat
ment programme in 1984. It only attracted a few Nicaragua
hundred participants in the beginning. But, by Panama
2009, backed by a marketing campaign, pass- Paraguay
port holders of the island nation were given visa- Peru
free access to the Schengen Area and demand Puerto Rico
increased rapidly. Neighbouring Antigua and Saint Lucia
Barbuda, Grenada, Dominica and Saint Lucia St Maarten
have since joined St. Kitts and Nevis as members St. Kitts & Nevis
of the citizenship-by-investment club. Turks and Caicos Islands
The CBI industry has experienced exponen- Uruguay
tial growth in the past years, and four EU coun- USA
tries – Austria, Malta, Cyprus and Bulgaria – also Venezuela
offer CBI programmes. Vanuatu, an offshore Virgin Islands
financial centre, is the only Pacific island that
offers citizenship by investment. Turkey and
Jordan have launched CBI programmes in 2018.
Moldova also adopted new regulations on grant-
ing citizenship to foreigners who invest in the
country, while Montenegro is working on a CBI
programme that will be launched shortly.
The Attraction of Golden Visas
While citizenship programmes are the more
visible face of the industry, many more
nations operate residence-by-investment (RBI)
programmes, with major global players such
as the US, the UK, Canada, Australia and New
Zealand participating in this industry. Half of the
member states of the European Union today offer
a dedicated immigrant investor route. Over the
past few years, the golden visa market has turned
into a multi-billion-euro global phenomenon
with price tags varying from country to country,
costing anywhere from €250,000 to €10 million.
Outside of the Western hemisphere, Dubai’s
and Thailand’s residence programmes are firm
favourites among high-net-worth investors.
Countries offering Residence by Investment (RBI)
Countries offering Citizenship by Investment (CBI)
Countries offering RBI and CBI
Source: Investment Migration Council
8INVESTMENT MIGRATION YEARBOOK 2018/2019 IM
Western Europe Eastern Europe MIDDLE EAST & ASIA Oceania & Islands
Andorra Bulgaria China Australia
Austria Croatia Hong Kong New Zealand
Belgium Cyprus Indonesia Palau
Finland Czech Republic Japan Tonga
France Estonia Jordan Vanuatu
Germany Georgia Macau
Gibraltar Kazakhstan (coming soon) Malaysia
Greece Latvia Philippines
Guernsey Lithuania Qatar
Iceland Montenegro (coming soon) Singapore
Ireland Romania South Korea
Isle of Man Russia Sri Lanka
Italy Serbia Taiwan
Jersey Slovakia Thailand
Luxembourg Turkey UAE
Malta Ukraine Vietnam
Monaco
Netherlands
Portugal
Spain
Switzerland
UK
9IM INVESTMENT MIGRATION YEARBOOK 2018/2019
The World of
Investment
Migration Facts &
Figures
100
countries offer some form
of RCBI programme
5,000
estimated number
of people acquiring
citizenship abroad
per year
550+
Number of agents licensed
across the world
375+
Members of the
Investment Migration
Council, coming from over
40 different countries
$3 billion
Value of the citizenship-
by-investment industry
4-25%
Percentage of GDP
contribution of
RCBI programmes
in some countries
1984
The year when St. Kitts
and Nevis introduced the
first CBI programme
$100,000 -
$2.4
million
Range of minimum
investment required by
different CBI programmes
around the world
10IM INVESTMENT MIGRATION YEARBOOK 2018/2019
Industry Profile
Gearing up for
the Next Transformation
The investment migration industry is on the cusp of great change and opportunity,
but important questions are being raised to which answers are not yet known.
12INVESTMENT MIGRATION YEARBOOK 2018/2019 IM
T he investment migration industry is buzzing
with activity as the niche sector goes main-
stream. With its new-found appeal among the
Demand Drivers
The true global citizen has very much become
a reality with the emergence of digital nomads,
mass affluent and high-net-worth individuals, industrial tycoons, high-net-worth indi-
the sector is undergoing a mini-boom. Demand is viduals and globetrotting professionals, but
being driven by a desire for global mobility. More for those people who ‘don’t come from the
residence- and citizenship-by-investment (RCBI) right country’, visa restrictions can make travel
programmes are competing for market share impossible. Rising economic and political insta-
than ever before. This development has not gone bility has also prompted demand from people
unnoticed by governments and international or- looking for peace of mind; should the need arise,
ganisations, which are placing programmes under they and their families have a plan B. While secu-
greater scrutiny following a series of missteps by rity and mobility have been the main drivers, in-
the industry. While the industry acknowledges creasingly investors are looking to secure a better
the seriousness of its shortcomings that have future and lifestyle for their families through
been reported in the international media, it is also investment migration programmes that offer en-
sending a clear message that it is committed to hanced work and study opportunities, as well as
working with its global partners in order to ensure access to world-class healthcare, for themselves
that programmes will not be abused. and for their children.
Industry Pioneers Too Big to Fail
Residence-by-investment (RBI) programmes RCBI programmes represent anything between
have existed for decades in countries such as the 4% and 25% of GDP in some countries, and they
US, Canada and the UK to attract people, capital can be a defining factor between an economic
and know-how. These programmes have evolved surplus and a deficit. Across the world RCBI
over the years and are now being used to entice a programmes have been the catalyst for major
whole new generation of start-up entrepreneurs infrastructural improvements, including resorts,
and global innovators. Most countries in the harbours, airports, hospitals, office buildings and
world today offer some form of RBI programme. luxury residential developments, which in turn
Portugal redefined the concept of residence by in- have had a massive multiplier effect on the re-
vestment and is credited with introducing what is spective economies. These programmes are not
now known as the golden visa by offering better only influential in delivering cutting-edge infra-
conditions and inserting the purchase of prop- structure, investments into companies, start-ups
erty as an investable asset in an effort to revive and R&D programmes; they are also having the
its economy. Their success has led to countries effect of generating whole new economic sectors
around the world emulating the concept. that did not exist before the introduction of these
The Caribbean twin-island nation Saint Kitts programmes. The sector has enjoyed significant
and Nevis was the first country in the world to growth over the past three to five years. While
extend the concept to citizenship by investment comprehensive data on the industry is not widely
(CBI) in the 1980s. Several other Caribbean coun- available, it is estimated that the sector now gen-
tries, including Dominica, Antigua and Barbuda, erates US$3billion in turnover per year.
Grenada and Saint Lucia, followed suit over
the years, while the decision of three European
countries – Austria, Malta and Cyprus – to also
offer citizenship is widely considered as the in-
dustry’s biggest leap forward. Turkey and Jordan
are some of the latest additions to the CBI club.
The industry now looks to Montenegro, which is
expected to launch its programme shortly.
Trilogy Limassol Seafront by Cybarco
13IM INVESTMENT MIGRATION YEARBOOK 2018/2019
Market Players
Today, there are approximately 100 countries of-
A Serious Responsibility
The investment migration industry emphasises
Today, there are
fering investment migration programmes, with that it wants to be part of the solution and not the approximately
100
60 of them actively promoting their programmes problem and bemoans the fact that the actions it
and 30 of them attracting the largest share of ap- has taken are not being fully recognised by the
plicants. Supporting these countries in market- international community. Countries offering cit-
ing their programmes are concessionaires, agents izenship-by-investment programmes are acutely
and referral partners. Figures on the number of aware that they risk having their programmes countries offering
companies and advisers active in the industry suspended or forced to close if they were to
are hard to come by, though some 550 agents are grant residency or citizenship to individuals investment
licensed in one country or another. However, without thorough background checks. Because
this is believed to be only a small fraction of the of the importance of the sector to many econo- migration
market as many countries do not require formal mies, programmes have implemented KYC and
registration. The industry landscape remains due diligence standards that now go far beyond programmes, with
60
very fragmented and ripe for consolidation. those of the banking and the financial services
Henley & Partners and Arton Capital are the two industries. The industry recognises it needs to do
dominant forces in the sector followed by a large more in terms of showcasing the steps it is taking
number of small firms. Increasing competition to safeguard the borders of its partner countries
and a need to scale up may well see the first wave and thereby avoid having visa-waiver agreements of them actively
of mergers and acquisitions occurring sooner revoked.
rather than later. promoting their
A Changing Clientele
It is estimated that up to 5,000 people acquire programmes and
30
Growing Pains
The industry has enjoyed some very posi- citizenship abroad each year. To date, Europe is
tive momentum over the past number of years the most popular region in terms of second resi-
with record numbers of affluent citizens from dence and citizenship applications, accounting
the booming BRICS nations seeking access to for over half of the total number of applications,
Europe and North America. A major plus for the with the Caribbean in second place, ahead of of them attracting
industry has been the ability to attract entirely North America. The European programmes are
new customer groups to the concept of acquir- popular thanks to free travel within the EU, while the largest share
ing a second residency or citizenship, which has the Caribbean programmes are attractive due to of applicants.
helped expand the pool of potential clients and, their relatively low investment requirements. The
in turn, widened the choice of programmes avail- largest sources of custom are China, Russia and
able. But it hasn’t all been smooth sailing. Pricing the Middle East. While the traditional markets
wars not only impacted the bottom line but also are still important, agents are reporting that they
the image of the industry. Questions on trans- are seeing increased interest from applicants in
parency and adherence to international stand- the US, the UK, as well as other European coun-
ards on anti-money laundering and compliance tries, who increasingly value the options a second
regulations brought the sector into sharp focus passport or an alternative residence can offer.
of other countries and international organisa- Events including the decision by Britain to leave
tions who demanded tighter controls across the the European Union and the 2016 US Presidential
industry. election are driving new interest. Most of the in-
dividuals making these types of investments are
high-net-worth entrepreneurs with a net worth
of about US$2 to US$15 million. However, the
recent price drop some programmes have expe-
rienced means acquiring a second passport has
become increasingly affordable for people of
more modest means too.
14• Ranked No. 1 CBI Programme by FT’s PWM Magazine • Trusted, Efficient and Streamlined Application Process • Strong Investment Opportunities • Visa-Free Access to over 120 Countries
IM INVESTMENT MIGRATION YEARBOOK 2018/2019
Property Maintains its Allure
Property has been king in terms of investable
Breaking New Ground Because of the
Countries now need to look beyond their RBI and
assets for RCBI programmes. For both the in- CBI programmes in order to meet the needs of an importance of
vestor and the country, this has had a positive ever-diverging client base, which has opened up
impact in terms of fuelling construction and job a new opportunity for the investment migration the sector to
creation, but in some countries this has led to an industry to start providing value-added services
unsustainable rise in the number of high-end and solutions to support today’s global citizens in many economies,
developments and increasing property prices. their international work commitments and life-
While many programmes have sought to intro- styles. The development of specialist products
programmes have
duce a wider array of investment options, includ- supporting both the commercial and personal implemented KYC
ing government bonds, investment in companies lives of these individuals, in areas such as such as
and venture capital, investors still appear to wealth management, legal, financial, consulting, and due diligence
prefer the property option. Programmes need to advisory, insurance and healthcare, could even
be far more innovative and creative in providing have a longer term economic impact on countries standards that
attractive alternatives to just passive investment than RBI and CBI programmes themselves.
in property. now go far
A Common Global Standard
Future Outlook
The opportunity for the industry has never been
beyond those
The investment migration industry currently greater but it’s not without its risks. The world of the banking
remains largely unregulated, with only a handful is getting smaller, and with it perceptions of na-
of countries having established an independent tionality. Ever-increasing numbers of people are and the financial
regulator to oversee the operation of their pro- choosing to travel, live, work, invest and do busi-
grammes. Huge regulatory pressures emanating ness around the world, creating a melting pot of services industries.
from the EU and G20-initiatives on anti-money races, cultures and nationalities that are coming
laundering and anti-terror legislation are requir- together to create a new, globetrotting tribe. This
ing the industry to embark on a major overhaul new phenomenon is challenging traditional
of its customer due diligence to comply with notions of nationality, making it more fluid. The
new global standards and to carry out in-depth industry is on the cusp of major change in terms
checks on applicants and the sources of their of coming up with new and innovative ways to
funds. Setting common standards for golden visas serve this growing international group of individ-
and citizenship programmes is now a must. The uals. There is a significant opportunity for coun-
industry more than ever needs to recognise the tries to expand the concepts of residency and
need to either self-regulate or accept that rules citizenship, some of which are already appearing
will be imposed on it. More importantly, the on the horizon such as Estonia’s e-Residency pro-
impetus must come from governments as they gramme, which offers the freedom to easily start
are responsible for the market and not the various and run a global business in an EU environment.
professional service firms, advisers and agents Though it allows entrepreneurs to open a busi-
who promote it to the international rich. A major ness and run it remotely, while paying taxes and
concern for countries who oppose these pro- signing documents digitally, it does not provide
grammes is the potential increase in security risks citizenship, tax residency or even the right to
that visa-free travel poses. Extremism is becoming travel to Estonia. The programme has attracted
more prevalent in various parts of the world and over 40,000 e-residents but aims to attract 10
relaxing travel rules will only make it easier for ter- million by 2025. This and other similar initiatives
rorists to cross borders. Implementing regulations show potential and highlight the need that exists
that open the door to travellers without compro- to support today’s global citizens in their interna-
mising the security of partner countries is the key tional business ventures, goals and lifestyles. ◆
challenge the industry must overcome in order to
avoid being blacklisted or having visa privileges
revoked.
16IM INVESTMENT MIGRATION YEARBOOK 2018/2019
Interview: Bruno L’ecuyer, chief executive of the Investment Migration Council
Developing Professional Standards for
a Growing Industry
Bruno L’ecuyer, Chief Executive of the Investment Migration Council,
explains how the association works with professional bodies,
governments and international organisations in order to increase
public understanding of the investment migration industry and
shares the IMC’s plans and priorities for the coming years.
What is the role of the Investment Migration
Council, and what is its mission?
The IMC was set-up in Geneva in 2014 as a non-
profit industry association. It is the worldwide
association of investment migration profession-
als and the industry’s first and only credible self-
regulatory body. It brings together the leading
stakeholders in the field and gives the industry a
voice and significant accountability.
The purpose of the council is simple and
straightforward. It has been created by industry
leaders and various governments who have, in
the last few years, made repeated calls for the in-
dustry to introduce concrete structures to elevate
public trust and introduce transparent and reli-
able regulatory standards. The IMC has set out
its mission, which is the result of a global consul-
tation with the world’s leading professionals in
this field, as follows:
• Setting the global standards in relation to
residence and citizenship-by-investment
and informing public policy in this field.
• Promoting competence, continued
professional development and high Can you define the meaning of investment
ethical standards among its members. migration and citizenship-by-investment –
what are the distinguishing features of each?
• Improving public understanding and This excellent question is not as simple as it might
transparency of investor residency seem, since migration virtually always boasts an
and citizenship programmes. economic component. In the absolute majority of
cases, meeting the basic requirements set for the
• Contributing to the scholarly field acquisition of nationality and residence, espe-
of investment migration. cially permanent residence, comes down to the
assessment of the (economic) contribution that
• Being the trusted partner and the the migrant makes to the host society: the regular
leading platform for professionals, payment of taxes, security of employment and
academia and governments. the possession of necessary skills, all aiming
to guarantee a stable contribution to society as
opposed to reliance on the local social assistance
schemes. These have to be distinguished from
investment migration, of which citizenship by in-
vestment is an important component.
18INVESTMENT MIGRATION YEARBOOK 2018/2019 IM
Investment migration is different since the ponents of each investment residency- or citi-
key emphasis in designing and implementing zenship-by-investment programme is required
investment migration programmes is on the fi- before any conclusions are drawn. The devil is
nancial contribution that the migrant is willing always in the detail. This being said, it is crucial to
and able to make for the benefit of the host take the interests of both the clients and the gov-
society. It is thus not merely the presence of the ernments into account at all stages. Programmes
financial component, which is of key importance that do not actually benefit the country estab-
for us. This, as I said, is present in a number of lishing them are much more common than one
migration and citizenship programmes around might think.
the world. What is of importance is the key role
played by the financial contribution in the pro- There is a lot of political controversy
grammes, which are covered by the term. Any around migration generally. How does the
visa or residence programme allowing access Council aim to influence public debate?
into one or more countries based primarily (but The number of countries offering immigrant
not exclusively) on a financial contribution to the investor programmes has grown significantly
host society, will fall within the term ‘investment over recent years, and this will continue as
migration’. The same applies to citizenship by countries complete for investment and talent.
investment, which focuses on the financial and While new programmes have been introduced,
investment-oriented side of granting nationality, older existing programmes have been refined
as opposed to other elements, such as family ties and strengthened in order to increase integ-
with other citizens, sporting achievements, birth rity and security, and overall the quality and
in a particular territory and the like. The defini- reliability of investor immigration structures is
Bio : Bruno
L’ecuyer is the
Chief Executive of the
tion is broad to ensure that all investment migra-
tion and citizenship-by-investment programmes
much greater than in the past. The key factor
for all programmes is the strength of their due
Investment Migration around the world fall within its scope. diligence procedures, and these are continually
Council (IMC), the being refined and reinforced. The IMC works
worldwide association What are the most common issues with professional associations, governments
for professionals dealing faced by clients and governments and international organisations in order to in-
with investor immigration in the area of investment migration crease public understanding of this complex
and citizenship by and citizenship by investment? area and promotes education and high profes-
investment. Bruno leads Any well-designed investment migration pro- sional standards among its members.
the Secretariat reporting gramme implies that the interests of the clients
to the Governing Board and the governments are aligned; both sides What requirements are necessary for
and is responsible for should benefit from the programme. This is one to become a member of the IMC?
all IMC operations. A where key issues usually arise, which can theo- To become an active member, one must be a
regular contributor to retically be resolved at the programme design or practitioner with proven experience and exper-
international publications implementation stage, but often go unnoticed tise in residency and citizenship planning, have
and conferences in for a long time. Plenty of mistakes can be made, a good reputation and a clean professional and
Europe, the Middle East undermining the interests of both the govern- personal record. The IMC will evaluate each ap-
and Asia, he has held ment and the clients. For example, the due dili- plication on its own merits and decide on admis-
positions in London, Paris gence requirements established by the govern- sions. There are different types of memberships
and Hong Kong. Bruno ment eager to cash in on the programme could available, including corporate, individual, aca-
was previously head be too lenient. While this can be presented as a demic and government.
at a national financial positive feature, since a visa or a nationality is
services association, easier to acquire, this is highly problematic in the What is the IMC’s long-term vision?
acting as a bridge long run. When such leniency is discovered, it Currently, we are focusing on creating the in-
between government and necessarily undermines the trust of other states dustry’s first set of professional qualifications,
industry. He has extensive in the nationalities granted, reducing the value essentially establishing a training and certifica-
expertise and experience of investment for all the clients and, ultimately, tion programme for professionals working in the
in the management and undermining the financial viability of the pro- industry. This follows on from the very useful
expansion of a professional gramme. Similarly, programmes lacking trans- ‘Code of Ethics and Professional Conduct’, which
services association. parency, or where rules are not sufficiently clear we launched in 2015 and that has been adopted
and strict, can suffer from corruption, undermin- by all our members and also some governments,
ing trust and value of investments. either directly or indirectly by amending it so
On the other side of the coin, the attractive- that it suits their local environment. Additionally,
ness of a most diligently designed programme the Council sets professional practice standards
can be radically different from real life. Studies for members on a global level through this Code,
show, for example, that the added value of some creating a culture of professional excellence and
reputable programmes is far from clear, as the in- ethical practice. As for our long-term vision, it
vestments they generate are not adding sufficient is straight forward: The IMC will be the world-
value in the context of the country’s economy wide association for investment migration pro-
to justify the allocation of resources, which the fessionals, academics and governments to come
running of the programme requires. All in all, together, providing a platform for cross-border
very serious individual scrutiny of all the com- exchanges. ◆
19IM INVESTMENT MIGRATION YEARBOOK 2018/2019
375+ members
360 Advisory & Management GmbH
Official list of Abreu Advogados
Academy Finance
members 2017-2018 ACT Advisory Services Limited
Ahmed Ghattour & Co
AIT Accounting & Management Services Ltd
Al Safar & Partners Advocates and Legal Consultants
Alternative Residence and Citizenship Global Pty LTD
Alves & Co
Andreas Demetriades & Co LLC
Antis Triantafyllides & Sons LLC
Areti Charidemou & Associates LLC
ARQ Group
Astons
Atwics Group
BDO Consulting
Belion Partners LLP
Beshara Global Migration Law Firm
Bishops Services
BLVUE Zürich Advisory AG (Ltd.)
Bond University
Capital Union Bank
CCEF Secrétaire Generale - Section Liban
Century Capital Inc.
Chetcuti Cauchi Advocates
Chriso Savva LLC
Christodoulos G. Vassiliades & Co LLC
Ciba Invest
Citizen Lane
Citizenship By Investment Unit - Antigua & Barbuda
Citizenship Solutions
CJ International Group
Cosmic Business Initiation Services
DCS Law Firm
Deloitte Malta
Dimitrov, Petrov & Co Law Firm
Discus Holdings
DORDA Rechtsanwälte GmbH
Du Boulay, Anthony & Co
E & G Economides LLC
Efthymios G. Navridis & Asscociates Law Firm
Eksper Consultancy
Emmanuel Jacques Almosnino
Energopiisi
20INVESTMENT MIGRATION YEARBOOK 2018/2019 IM
from 40+ countries
Eurofast Taxand Ltd Lecanda Immigration and Nationality Law
Evisalaw Lerotheou, Kamperis & Co LLC
Exiger Diligence LTC Advisory & Services
Exiger LLC Maisto & Associati
Fakhoury Law Group Malta Residency Visa Agency
FBS Kotsomitis International Masri Holding Sal
Fidesco Trust Corporation Mc Law Offices
Fidescorp Limited Michael Kyprianou & Co. LLC
Fiduciana Trust (Cyprus) Limited Monaco United Advisors Multi Family Office SAM
First Advisory Trust reg. New Balkans Law Office
Focus Business Services (Malta) Limited (FBS Malta) Northern Pointe Development Ltd
Fragomen Worldwide Novafirm SA
Frendo Advisory Omega Partners International
Ganado & Associates OneWorld Ltd.
Global Information Consulting Group Ousheng & Partners
Global Migration Papilios
Global Nomad Consulting Passports Global Ltd
Global Residence & Citizenship Practitioners Inc. Polyglot Ltd
Gordon Dadds LLP Portman International LTD
Grant, Joseph & Co Python & Peter
GVZH Advocates RC International
Henley & Partners RIF TRUST INVESTMENTS LLC
Hill & Hill Chambers Risvas & Associates Law Firm
Identity Malta Agency Rosemont Consulting Sarl
IFLN International Financial and Legal Network Rostova & Westerman Law Group, P.A
IIP Malta Rule Ltd.
Ilcom Limited SAAD AHSAN Law Company
Integritas Group Sakeenah Group
Inter-Tax Consultants Shard Capital Investor Visa
Invest & Settle SOAS
Invest in the USA (IIUSA) Sunrise International Legal Services
Investment Migration Insider Swiss Insurance Partners AG
Island Heights The Belgium Office
Island Living Investment Services Ltd The Related Companies, L.P.
Katerina Marini & Associates Law Firm Tier 1 Global Business Consultants
Klasko Immigration Law Partners, LLP UCLan Cyprus
KLZT Law University of Vienna
KPMG Varnavas & Varnavas
L Papaphilippou & Co LLC Visas Consulting Group Inc
La Vida Europe Ltd. WDM International
Laferla Insurance Agency Limited World Grenada Inc.
Latitude Consultancy Limited World Immigration Service
Law Quest Xiphias Immigration
Lawrence Associates Ltd.
21IM INVESTMENT MIGRATION YEARBOOK 2018/2019
Interview: Dr Christian H. Kälin - Group Chairman and CEO of Henley & Partners
Consolidation will
Drive Industry Forward
The investment migration industry is going through an exciting growth phase
that is not without its challenges. One of the industry’s biggest issues is that it
is still largely unregulated, says Dr Christian Kälin of Henley & Partners.
As a major player in this industry,
Bio
can you give us a brief overview of : Dr Christian H. Kälin,
Henley & Partners and the extent of TEP, IMCM, Chairman of
your operations around the world? Henley & Partners, is considered
Henley & Partners is the global leader in resi- one of the world’s foremost experts
dence and citizenship planning. Our global in investment migration and
team consists of over 300 people, and we have a citizenship-by-investment, a field he
presence in 25 countries around the world. We pioneered. Holding master’s and PhD
advise private clients, but we also run a govern- degrees in law from the University of
ment advisory practice. We have been involved in Zurich, he is a sought-after speaker
strategic consulting and in the design, set-up and and advises governments and
operation of some of the world’s most successful international organisations. He is the
residence and citizenship programmes. author, co-author, or editor of many
publications, including standard
What would you highlight as some of the key works such as the Global Residence
developments that have most affected the and Citizenship Handbook, Ius doni:
industry over the past three to five years? The Acquisition of Citizenship by
I think there are a few contributing factors. On the Investment, the Henley & Partners
one hand, there are a number of citizenship and – Kochenov Quality of Nationality
residence programmes that have made headlines, Index, and the Switzerland Business
both in a positive way and in a politically contro- & Investment Handbook.
versial way. In any case, the outcome has been an
increase in awareness both on the private side
and on the governmental side in terms of attract-
ing global citizens through these programmes.
Another factor has been growing political and
economic uncertainty — including the trend
towards rising populism and nationalism in
various parts of the world — which has prompted
many people to look for a ‘plan B’. People are in-
creasingly realising the attractiveness of a second
passport. Many more countries are now offering
residence and citizenship programmes, and the
market is set to grow further in the coming years.
We already know that more European countries
are looking to join this industry.
How would you describe the
current industry landscape? usually do not take up residence in that particu-
It is very important to distinguish residence pro- lar country, at least not immediately. Traditional
grammes from citizenship programmes. People countries where wealthy people relocate to are
who go for residence programmes are usually the UK, Switzerland, Canada, Australia, the US,
seeking to relocate or desire easy access to, for and more recently various European countries,
instance, the Schengen Area. People who go such as Spain and Portugal. A typical client could
for citizenship programmes, on the other hand, be a South African who is not happy with current
22INVESTMENT MIGRATION YEARBOOK 2018/2019 IM
developments in the country and wants to even- Once a niche sector, investment migration
tually move elsewhere. Then there is another is quickly moving into the mainstream
category of clients. They are currently happy in and attracting the attention of the media,
South Africa, for example, and want to stay there, policy-makers and the public at large, who
but they don’t know what is going to happen in question the industry’s legitimacy. Why
the future. They are simply looking for a contin- has the industry so far failed in engaging
gency plan: in other words, if things were to get with these actors and addressing the
worse in South Africa, they could move some- negative public perception of the sector?
where else. They also want greater mobility, For our part, Henley & Partners has always sup-
since the South African passport does not offer ported serious and objective journalism. Media
visa-free access to many countries. Citizenship in engagement and public advocacy should be pri-
a safe country, whose passport provides visa-free oritised and taken seriously by everyone working
access to many countries, is an ideal solution. in the industry. We recognise that investment
Many of the new jurisdictions that are cur- migration is still relatively young and, in combi-
rently introducing programmes are position- nation with continued global and technological
ing themselves as regional hubs. Take Jordan or growth, this makes for a lot of ambiguity: it is
Kazakhstan, for instance. Such countries could not always straightforward to separate fact from
be interesting second-home destinations for fiction, especially in the media and online. In
people from those regions. We also have to do such an environment, transparency is key, and it
away with the perception that only people from is in this spirit that we always reply openly and
emerging markets are interested in these oppor- positively to the media requests we receive.
tunities. For instance, we have Japanese clients I think it’s important to note, though, that a
who look at Thailand, and we have German fair amount of the reporting on investment mi-
and French clients who look at Canada. We also gration is politically motivated, especially in the
Many of the new have American clients who acquire second citi- Caribbean and Malta. On the other hand, many
zenship in order to travel more securely abroad of the concerns being raised are the result of
jurisdictions that in the wake of increased terrorist threats against either a lack of information or misinformation.
American citizens, or Americans who spend con- Some commentators for example, view these
are currently siderable time in Europe, sometimes more than programmes as security risks. However, a quick
half a year, and require easy access for business. look at the figures puts this concern into perspec-
introducing EU citizenship is almost a must for them in terms tive. The EU grants about 800,000 citizenships
programmes of operating freely, not requiring a work permit per year. Out of these 800,000 citizenships, about
everywhere they operate, and, for their kids, 700 are granted by countries with citizenship-by-
are positioning studying in Europe without restrictions. investment programmes, which is less than 0.1%
of the total number of citizenships granted by the
themselves as What is the market value and composition EU annually. On top of this, this 0.1% of the citi-
of the global RCBI industry? zenship pool is carefully vetted through strict due
regional hubs. Today, citizenship-by-investment has grown into diligence procedures, whereas for the other hun-
a US$ 3-billion-industry, while residence-by- dreds of thousands of new citizens there is little
Take Jordan or investment — which is more difficult to quantify or no due diligence conducted. Where exactly, if
Kazakhstan, for — probably exceeds tens of billions of dollars anywhere, do we have a security risk?
each year. There are close to 100 countries that In addition, in all the programmes that we
instance. Such have a citizenship or residence programme in have designed, we include the possibility of citi-
place. There are about 60 active and 30 really zenship being withdrawn should any information
countries could relevant programmes in the world. By ‘relevant’, surface that calls into question an individual’s cre-
I mean that a sufficient number of people actively dentials and eligibility. We definitely need to make
be interesting express interest and apply every year. sure that programmes are not abused by criminals,
but we also need to communicate that the reality
second-home Are you seeing new companies — like is very different from what some of the industry’s
destinations for law firms — going into this field and critics and ill-informed or deliberately politically
specialising in this industry? motivated sceptics generally portray it to be.
people from Yes. Our research has shown that there are some
550 companies registered with various authori- With more countries competing to offer RCBI
those regions. ties across the world that are servicing this in- programmes, do you worry that the industry
dustry. But this number is only a fraction of the is becoming commoditised and that the price
total market: if you factor in the companies that to acquire citizenship is becoming too low?
do marketing and promotional work for the in- No. We think it is good for the industry that there
dustry, as well as third-party and other external are more players and more competition, since
agents, the number becomes much bigger. Firms it encourages countries to continually innovate
from other sectors, such as professional and cor- their programme structure and provide a better
porate services, as well as wealth management service to potential clients. We might not like the
services, are increasingly entering the space. This fact that prices are dipping as much as they are
diversity is extremely positive as it underlines the in the Caribbean, but ultimately it is not up to
seriousness of the business and adds additional us to decide: it’s a decision that each government
credibility to the sector. has to make, and there are also some market
23IM INVESTMENT MIGRATION YEARBOOK 2018/2019
forces at play. Moreover, even as prices are being
lowered, due diligence standards and screening
mechanisms in the Caribbean are being stepped
up each year rather than compromised. So it’s
important to view this matter in its full context.
The real risk, we feel, lies in unaccredited
agencies commodifying citizenship as something
that can be ‘bought’ rather than earned through
substantial economic contribution to a particular
country. Misleading messaging creates a distort-
ed view of what investment migration is really
about. Far from a one-sided transaction, it is an
arrangement that serves governments and local
populations as much as individual clients.
Countries have been talking about a
public register where information on new
citizens could be shared in order to achieve
transparency and allow governments
to know who is applying for citizenship.
What are your thoughts on this?
I think it is a good idea in principle, but it will be
difficult to implement in practice. Countries will
need to strike a balance between the confidential-
ity with clients and public demands for transpar-
ency about citizenship processes. The industry
would certainly benefit from more transparency;
there is nothing wrong with citizenship pro-
grammes, so there is nothing to hide. Individuals
and countries alike have a genuine need for these
programmes.
CBI programmes in some countries are
accounting for a big portion of their GDP. Is
there a worry that countries are becoming
very dependent on this one industry? is the diversity of players in the advisory space:
It is important that economies are not com- you have a full spectrum, from very good compa-
pletely dependent on these programmes for their nies to less reputable firms. This situation exists
economic wellbeing. This is part of why we feel in every industry, and I am confident that we will
that Malta’s Individual Investor Programme is
such a good model for other countries to follow.
see greater consolidation in the coming years,
with the larger and in particular the more repu-
There is no
The Maltese economy is not reliant on the pro-
gramme, and, as such, the government can
table firms surviving over the long-term. One
of the biggest challenges faced by the industry
doubt that the
easily afford to reject applications. It is currently,
besides Austria, probably the only country that
is the fact that it is still largely unregulated, so I
am very pleased to see the industry demonstrat-
investment
does not really need a citizenship-by-investment
programme and thus can afford to be very choosy.
ing a strong degree of self-regulation through the
Investment Migration Council (IMC).
migration
It’s worth mentioning, however, that invest-
ment migration programmes have historically
In terms of sustainability, I hope we will see
firms investing heavily in growing their advocacy,
community, and
also played a critical role in helping small coun-
tries diversify their economies and move away
thought leadership and due diligence efforts,
since maintaining credibility is crucial for the in-
in particular the
from an overdependence on volatile industries,
such as the sugar cane industry in St. Kitts and
dustry’s ongoing success.
Finally, I think we’re going to see investment
leading firms in
Nevis. The challenge for these countries now is
to continue their diversification and future-proof-
migration becoming a simple fact of modern life,
something accepted around the world as a neces-
this business,
ing efforts, while at the same time nurturing and
growing their investment migration programmes,
sity for both individuals and governments. need to work
which provide a healthy source of capital inflows. Is there any one piece of advice that you
would like to share with the community?
closer together
How do you see the landscape
evolving in the next 5 to 10 years?
We need to regulate ourselves and adhere to best
practices. The IMC is showing the way. There
to expand and
The industry is on a very good path. We will be
seeing more countries coming into the space and
is no doubt that the investment migration com-
munity, and in particular the leading firms in this
strengthen the
developing programmes, and demand for these
programmes is growing. The ongoing challenge
business, need to work closer together to expand
and strengthen the sector further. ◆
sector further.
24MRVP – A Success Story
MRVP continues to gain great international momentum and popularity. The two fascinating sunny
islands of Malta & Gozo are the cornerstone of this Programme. Rigorous four tier Due Diligence
checks are performed on all applicants. The key advantages of MRVP :-
A competitive low application fee when compared to other European Residency by
Investment Programmes;
Attainment of permanent residency for main beneficiary and dependants;
Freedom of movement within the Schengen Zone, three months in every six months;
Eligibility to apply for Long Term Residency in line with the Immigration Act and
subject to additional requirements as per such laws;
Option to redeem Qualifying Investment after five years;
A democratic, politically stable and safe country with an economy that is
growing relentlessly;
A multi-cultural environment that accepts diversity;
Access to various high level English Language Schools and Educational Institutions;
Malta the only country in the Schengen Zone where English is an official language;
No minimum stay on the island is required to retain residency;
Second-to-none Medical Health Care Solutions;
Unique business opportunities and grants for prospective Investors.
Clock Tower, Level 1, t. +356 25904500
Tigné Point, info@mrva.eu Malta Residency Visa Agency
Sliema TP01, Malta www.mrva.euIM INVESTMENT MIGRATION YEARBOOK 2018/2019
Interview: Allen Chastanet, Prime Minister of Saint Lucia
My Borders are
Your Borders
Allen Chastanet, Prime Minister of Saint Lucia, says he supports the
idea of common standards for the CBI industry, but he is against the
idea of setting a base price that no country would go below.
What is the history and background to
Saint Lucia’s CBI programme and how
important is it to the economy?
We were a relatively later-comer to the CBI in-
dustry, having only launched our programme in
2016. We saw the programme as a way to attract
foreign investment and raise funds for large-scale
development projects. Since its launch, we have
attracted four major hotel developments with a
combined investment value of over US$ 1 billion.
We have a very diversified economy, with tourism
accounting for the lion’s share, along with strong
agricultural and manufacturing industries. We
are currently developing a financial services
sector, which we’d like to expand in the coming
years. While the CBI programme is an excellent
opportunity to attract additional investment, I’d
like to stress that we are not completely depend-
ent on it.
How would you characterise the
overall landscape of the sector?
We are seeing more and more countries launch-
ing residence-by-investment or citizenship-by-
investment programmes, and we believe this is
very positive. While it creates more competition,
it also creates more credibility for the industry.
The industry overall becomes much stronger.
The industry has come under the spotlight
of international organisations and the
media who question the concept of
citizenship by investment. How should the
industry reply to this criticism?
I don’t think we can ignore it. We need to commu-
nicate better what we do to ensure that our pro-
Bio : Allen Michael
Chastanet, an
economist and hotelier, has
grammes are not an entry point for criminals. We been Prime Minister of Saint
have to be transparent as much as possible, but Lucia since June 2016. He is the
we should also make it very clear that any system political leader of the United
can fail. We are screening all applicants, and we Workers Party. Previously,
are doing our outmost to minimise the level of he served from 2006 to 2011
risk. We continuously update our systems when as Saint Lucia’s Minister for
new laws and regulations come in. We want to Tourism and Civil Aviation.
adhere to the best global standards.
26INVESTMENT MIGRATION YEARBOOK 2018/2019 IM
What are the priority issues that are You endorse the concept of a common
currently high on your agenda? Caribbean Citizenship programme. How
Correspondent banking is very high on our do you see this addressing the main issues,
agenda as some banks are not processing CBI including the price war, due diligence issues
funds, which is something I cannot accept. We and the possibilities of other governments
are doing all the checks that are required, includ- withdrawing visa-free access?
ing proper due diligence, and should not be dis- While the Caribbean is not one country, we have
criminated against. to take into account that the rest of the world
I can understand that the US and the EU are sees us as one. I respect the sovereign govern-
extremely concerned about the security of their ments and decisions of each Caribbean nation,
borders. When I talk to them, I get the message but I think we should work closer together. This
that they are not against this industry, they are does not mean that all programmes have to be
just trying to protect themselves. I, as Prime the same, but there should be some common
Minister, assure our partners that my borders elements. I also don’t think we need to compete
are their borders. But what becomes frustrating against each other. There is enough business for
is that once we satisfy their demands, they don’t all of us. There are also advantages on the opera-
change their policies. We need to find a solution tional side. As an example, if we were to establish
to move forward together. a central agency that would perform due dili-
gence checks, it could result in significant opera-
What are your thoughts on having a tional cost savings for all of us.
public register of individuals who have
gained citizenship by investment? With more and more countries choosing
Saint Lucia is not trying to hide anybody. While to launch their own programmes, do
we do not share information with the general you worry about the commoditisation
public on who has became a citizen, we do share of programmes and do you believe the
this information with security agencies around
If we were the world. Personally, I would like to see more
industry needs to set a price floor?
There are legitimate reasons why people want a
formalised due diligence cooperation between second citizenship, with political and economic
to establish countries, but many oppose this idea as they feel instability being two examples. We all wish to
it might imply an acceptance and responsibility have a sense of security, and in my opinion, ac-
a central for the due diligence being carried out on their quiring a second passport should not be an
part. They are willing to participate informally, option only available to the super-rich. I am
agency but once it becomes formal, they are not willing not even sure that everyone that applied to our
to do that. programme is a millionaire. I also think that the
that would market will ultimately decide the price and that
there is no requirement to agree on a minimum
perform due A number of CBI programmes have taken the
step of revoking investors’ citizenships. What investment.
diligence are your thoughts on this development and
what impact is it having on the industry? How do you expect the sector to develop
Unfortunately, we had to face that situation in
checks, it Saint Lucia: citizenship was granted and then
over the next five to ten years?
I think the market will continue to grow and that
we received information from third parties that there will be more information sharing, which
could result called into question the integrity of a number of will allow this industry to blossom. However,
individuals. We have learned from that experi- going forward countries that are just selling citi-
in significant ence and have streamlined our processes so that zenship may not be as successful as countries
this does not happen again. However, our law in- that brand themselves as holistic lifestyle loca-
operational cludes the option of revoking citizenship as the tions. We, in Saint Lucia, are clearly positioning
ultimate safeguard. ourselves as one such location and are actively
cost savings seeking to diversify our economy. We want to
offer our new citizens ample opportunities to get
for all of us What would you highlight as the top
three challenges that you as Prime involved in our economy, creating substance and
Minister are facing in this industry? building strong ties to the country. In the long
Firstly, it is a challenge to continuously convince term, I believe this will give the industry more
our international partners that we are running legitimacy.
a very good operation. Secondly, the investment
migration industry is very dynamic and chang- Have got a piece of advice or a personal
ing every day; so we need to make sure that what message to share with the industry?
we are offering is competitive. Thirdly, we need Let’s keep talking and work on common stand-
to ensure that the funds that are being raised ards for this industry. ◆
through this programme are directed towards the
development of the country. We are inviting new
citizens to join our society for the benefit of all
citizens. These funds should improve the overall
wellbeing of the economy.
27You can also read
