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Why Should States Conduct AML Due Diligence For CBI/RBI Investment Schemes?

Don't Allow Citizenship-by-Investment Schemes Facilitate Money Laundering in Your Country

CBI/RBI Insights

How the Concept of Citizenship-by-Investment First Emerge?

Throughout the course of human civilization, the process of naturalization has remained relatively flexible. The idea of granting citizenship or residence permits in exchange for cash dates back to roughly two thousand years ago, when Roman citizenship was purchased by the wealthy elite in the newly conquered territories. This helped to integrate the super-rich colonial subjects and loyalize them immediately into the Roman empire. Getting Roman citizenship in ancient times meant unrestricted travel within the empire (equivalent to the modern-day Schengen visa), immunity against death sentence or torture (except in the case of treason), and the exclusive right to vote.

Fast forward to 18th and 19th-century England, many Italian, German, and German-Russian merchants were granted citizenship by the Victorian British Empire, not for residence, but solely for economic purposes.

In recent history, the Caribbean islands of Saint Kitts and Nevis pioneered in introducing β€˜immigrant investor program’ in 1984. Following Saint Kitts and Nevis's lead, the United States in 1990 introduced its EB-5 visa for citizenship-by-investment (CBI) and residency-by-investment (RBI) schemes.

This age-old practice of granting citizenship by investment is strikingly similar to what is happening all across the world right now. Various countries are now experimenting with migration-related and investment-related schemes to draw in talented entrepreneurs and skilled migrants.

Why Countries Launch CBI/RBI Investment Schemes?

In the ancient world, offering citizenship for cash was used as a foreign policy tactic to recruit political allies in conquered territories. Take for example ancient Rome, the naturalization of non-Romans aided the Romanization of foreign powerful political figures and their integration into the empire.

In the modern world, countries offer Citizenship by Investment (CBI) programs to boost economic growth and accelerate international competitiveness. These government-ad