Foreigners who have obtained Maltese citizenship can be exempted from being named in public government documents for “reasons of security”, after a change in the law.
According to the legal amendment issued last month, Home Affairs Minister Byron Camilleri will have “absolute discretion” over whether he chooses to publish the names of passport buyers or anyone whose citizenship is revoked.
The amendment, first highlighted by Malta Today, does not state what kind of security reasons can be given to justify the lack of transparency.
'Unacceptable' change
Karol Aquilina, opposition spokesman for citizenship said the amendment, published days before Christmas showed that the government wants to add secrecy to the citizenship scheme.
"The opposition would like to remind everyone that in the past few months, there have been reported and confirmed cases of passport buyers who were accused of/ found guilty of serious crimes such as money laundering, fraud, smuggling, graft and tax evasion."
He said the amendment was "unacceptable" as it continues to harm Malta's reputation abroad and goes against the law.
"Before this legal notice, the minister was obliged to publish a full list of buyers in the government gazette. Article 24 of the original citizenship act states that names of both those whose application has been accepted as well as those whose application has been rescinded should be known to the public."
Controversial citizenship scheme
The changes come months after the EU commission began infringement proceedings against Malta and Cyprus over their passport schemes that allow wealthy foreigners to effectively buy EU citizenship.
Last October, the EU commission issued a letter of formal notice - the first step in infringement proceedings - and gave the government until this month to reply.
Should it fail to do so, the commission is set to issue a ‘reasoned opinion’ on the subject, another step in the commission’s drive to coerce member states into phasing out the schemes altogether.
This is one of many instances when the commission has raised concerns about ‘golden passport’ schemes increasing risks for money laundering and corruption.
The investment migration council, a worldwide entity that represents the ‘citizenship-by-investment’ industry, has staunchly defended Malta and Cyprus’ programs by saying that the EU has no right to tell sovereign states who they should issue a passport to.
The Maltese government has also defended this scheme. Prime Minister Robert Abela and Parliamentary Secretary Alex Muscat have both said that Malta “is willing to take legal paths” that are necessary to defend the program.
How to buy a passport
Non-Maltese citizens can obtain a Maltese passport via registration, naturalization or purchase through the rendering of “exceptional services.”
The Maltese Citizenship Act, a rebranded version of the controversial IIP scheme, describes “exceptional service” as “contributions by scientists, researchers, athletes, sportspeople, artists, performers, investors and entrepreneurs.”
The processing of citizenship applications is handled by a government agency known as Community Malta, and it is conducted within the framework for ‘citizenship for exceptional services regulations.’
These contributions include the following:
• €15,000 due diligence fee;
• €600,000 paid after client proves they have resided in Malta for 36 months OR €750,000 after 12 months;
• €50,000 for every dependent figure coming along with the main buyer,
• Purchase of a €700,000 property in Malta OR a five-year letting contract that runs up to at least €16,000 a year and
• €10,000 that goes directly to a registered NGO charity.
Community Malta is also responsible for conducting due diligence on every incoming applicant.
Anyone who has been arraigned or indicted for an offence before the International Criminal Court should be refused, according to the act's terms. The scheme also excludes anyone targeted by Interpol or Europol and anyone accused of terrorism, money laundering or funding of terrorism.
Generally, applicants with a criminal offence with at least a year’s worth of jail time, anyone who could cause “disrepute” to Malta or anyone slapped with international sanctions would also be refused.