EU Toughens Stance on CBI Schemes

  • The European Commission is escalating its pressure on Caribbean citizenship-by-investment (CBI) programmes, warning that their operation alone could now justify suspending Schengen visa-free access1 for participating states. This shift places Antigua and Barbuda and other nations squarely in the spotlight.
  • In its 8th annual Visa Suspension Mechanism report, the Commission abandoned its long-held demand for “genuine links” and instead declared CBI schemes run by visa-exempt countries to be an inherent security risk. “The operation of such programmes constitutes, in itself, a ground for suspending the visa-free status of third countries,” the report states. This marks a significant hardening of European Union (EU) policy and suggests that countries, even those making major reforms, could face punitive action.
  • Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis, and Saint Lucia are again singled out for operating “large-scale” programmes, which are viewed as a “significant and ongoing challenge” to EU border security. Across these five nations, over 100,000 citizenships have been granted through investment channels, with strong market demand continuing, as noted by the ⁠13,113 applications processed in 2023 and ⁠10,573 in 2024.
  • Antigua and Barbuda’s programme has one of the lowest rejection rates, just 1.7%, a point the EU highlights as evidence that screening remains insufficiently stringent despite enhancements made in recent years.
  • Regional governments, however, have worked to strengthen compliance, agreeing to a harmonised minimum investment threshold of US$200,000; stronger due diligence through international firms; and shared intelligence and cross-border security cooperation. Yet Brussels says these improvements do not remove the perceived threat. Instead, it now insists that heightened due diligence must continue “pending the discontinuation” of CBI schemes altogether, signalling that total shutdown, not regulation, is the long-term objective.
  • CBI revenues remain a critical economic pillar for these countries, supporting housing and public infrastructure, debt management, post-COVID fiscal recovery, and climate resilience projects. Consequently, any move to suspend Schengen visa-free entry, a major selling point of the programme, could sharply impact investor demand and public finances for these nations.

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1Schengen visa-free entry allows citizens from eligible countries (like the US, Canada, UK, Australia, Japan) to visit the 29 Schengen Area countries for tourism, business, or short visits (up to 90 days in any 180-day period) using only a valid passport, with no visa needed.

(Source: Antigua News)