The European Commission has launched an investigation into Cyprus and Malta

Last week, the European Commission began the investigation into Cyprus and Malta over citizenship for investment programs in the national economy. So, the measures taken against the countries are only sending letters with official notification about the beginning of the investigation. Within the next two months, the Governments of these States must respond to the letters received. If the answers are not satisfied, the European Commission can issue a Reasoned opinion on this issue, which in turn may lead to the imposition of sanctions against Malta and Cyprus.

Recall, that in January 2019, the European Commission established a group of experts containing of representatives of the member states of the European Union to develop standards and rules in the field of granting European citizenship. At the plenary session, with the participation of the European Commissioner for Justice, the problem of the risk of increasing money laundering, tax avoidance and corruption, the development of which is facilitated by the provision of "golden passports" for investments, was hotly debated.

According to MEPs, Cyprus, Malta and Bulgaria are the main EU members issuing these documents. Granting European citizenship without proper verification and ensuring of a level of transparency has a negative influence not only on the issuing State, but also on all participating countries as a whole, thus undermining their relative trust.

Link to source: https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1925

https://www.europarl.europa.eu/news/en/press-room/20201016IPR89564/