Rich French Eye Exit After Left's Election Upset, Tiny Tax Haven Sark Poised for Transformation,++
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Investment Migration This Week
Summaries prepared by James Nuveen
France's recent parliamentary elections, resulting in a hung Parliament and increased influence of leftist parties, have sparked concerns among high-net-worth individuals (HNWIs) about potential tax hikes and fiscal instability.
Wealth advisers and investment migration operators Hon. Philippe A. May 梅正熙 and Bastien Trelcat have reported a surge in inquiries from wealthy clients seeking to safeguard their assets in tax-friendly destinations such as Dubai, Singapore, and Uruguay. This exodus of wealth from France could significantly impact the country's economy, reflecting a broader trend across Europe where political uncertainty is causing unease and flight of capital.
USCIS issued new policy guidance on July 16, 2024, addressing noncompliance and sanctions in the EB-5 Program, incorporating reforms from the EB-5 Reform and Integrity Act of 2022. The guidance outlines sanctions such as suspensions, debarments, and terminations for noncompliant participants and clarifies factors considered in determining sanctions and what constitutes threats to national interest, fraud, and criminal misuse.
Additionally, the policy update explains how good-faith investors can retain eligibility if their associated entities are sanctioned and provide a process for assessing sanctions consistent with statutory requirements.
Panama's residence by investment programs show strong demand in 2024, with the independent means visa and Qualified Investor Permanent Residency Program potentially setting new records. The Friendly Nations Visa approvals have stabilized following a price increase, while other investor visa categories maintain high approval rates, averaging 98% across all programs.
These trends indicate Panama's continued appeal as a destination for investor immigrants, with investor visas accounting for 15% of all approved immigrants in 2024, consistent with the country's long-term average.
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The European Union has introduced new Anti-Money Laundering Regulations called AML6, which will apply from July 2027 and subject RCBI operators to the same AML and counter-terrorist financing requirements as banks and financial institutions. These regulations require investment migration businesses to implement customer due diligence measures, report discrepancies in beneficial ownership information, and mitigate money laundering risks, with potential fines of up to 10% of annual turnover or €10 million for non-compliance.
While the EU aims to create a new AML Authority to enhance oversight, IMI Pro David Lesperance expresses skepticism about the regulations' effectiveness in combating money laundering, viewing them as potentially adding complexity and costs to the investment migration process.
German entrepreneur Swen Lorenz aims to transform Sark, the tiny, self-governing island in the English Channel. He plans to raise some GBP 70 million to redevelop almost half of Sark’s total land area and more than double its population. "Our vision is to make Sark one of the best places in the world to live, and not just for the wealthy."
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Investment migration people in the news this week included:
Graph of the week