"Zero Chance" EU Wins in Court Against Malta, RICO Defendants in Washington, Armenia's Citizenship Shortcut

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Investment Migration This Week

Summaries prepared by James Nuveen

IMI Pro members have a new tool at their disposal - quarterly updates on real-world processing time data for major residence and citizenship by investment programs. This tool aims to bridge the information gap caused by the lack of official processing time updates from most programs.

The data is gathered from three sources: Official data (when available), empirical observations from investment migration practitioners, and third-party databases like Nomad Gate's crowdsourced application timeline data.

During an interview on St Lucian TV, Philippe Martinez revealed that MSR Media would add St Lucia's Deputy Prime Minister and Minister for Tourism Ernest Hilaire as a defendant in their RICO lawsuit against individuals and entities related to the Citizenship by Investment Programs in St. Kitts & Nevis and St. Lucia.

Martinez accused former St. Kitts & Nevis CIU Head Les Khan of masterminding an alleged discounting scheme and claimed to have evidence, including recordings and financial transactions, of corruption and fraudulent activities within the CIPs. However, he did not provide concrete evidence during the interview and deflected questions about financial compensation and his own past.

Just a few days later, further information came to light in the ongoing RICO lawsuit filed by MSR Media against various Caribbean CBI officials and entities. CEO of Saint Lucia's Citizenship by Investment Unit, McClaude Emmanuel refutes claims made by the plaintiff, Philippe Martinez, during the TV interview.

Specifically, Emmanuel denies presenting any evidence of a "scam" to Martinez during their meeting in Washington, D.C., and states that he did not suggest Deputy PM Ernest Hilaire's involvement in any illegal activities related to the CIP.

Additionally, Hilaire is set to address the nation regarding the citizenship by investment program, likely in response to Philippe Martinez 's claims of adding him as a defendant in the lawsuit.

For a few thousand dollars, you can obtain permanent residency in Armenia, which places you on a three-year path to citizenship without any minimum stay requirements, writes Armenian immigration lawyer Nerses Isajanyan . Armenian citizenship offers visa-free travel to 69 countries as well as the ability to live and work in other Eurasian Economic Union member states.

Additionally, Armenia is considering applying for EU membership, which could significantly increase the value of its citizenship by granting settlement rights across the EU and EEA countries.

The Cypriot Cabinet has officially stripped Jho Low of citizenship after an independent commission rejected his appeal. Despite red flags raised about his involvement in the 1MDB scandal, Low obtained citizenship through the country's Citizenship by Investment Program in 2015.

As part of a wider crackdown on individuals who acquired citizenship inappropriately through the CIP, the Cypriot government has introduced additional vetting procedures and reforms to navigate legal technicalities that initially prevented the revocation.

In this week's edition of "10 On The Weekend", IMI Pro Melissa A. Kelley-Hilton shares her thoughts on myriad topics such as American CBI market growth, tech adoption, conducting due diligence amid Taliban takeover, Dominica's PM, and her 5-year vision.

She says of the turmoil in Afghanistan in 2021, "Our commitment to serving our government clients was unwavering, even in the most challenging and volatile environments.”

Mona Shah, Esq. writes about the growing trend of individuals renouncing their U.S. citizenship, primarily due to reasons such as avoiding taxes (still the top motivator), political and social unrest, and safety concerns. She highlights the complex process involved, including paperwork, fees, interviews, and potential exit taxes.

Additionally, Shah warns about unexpected consequences, such as inadmissibility to the U.S., outstanding financial obligations, and public disclosure of renunciation for high-net-worth individuals.

On June 17th, the European Court of Justice will hear oral arguments on the European Commission's infringement case against Malta's citizenship by investment program. Professor Dimitry Kochenov , a leading scholar in EU citizenship law, stands by his 2020 forecast. As he believes the Commission lacks legal grounds, he maintains that the Commission will be "humiliated" in court.

Initiated in 2020, the hearing will allow both parties to present oral arguments, after which an Advocate General will issue an opinion before the court's final and binding ruling, expected within a year.

Mona Shah describes a noticeable shift in the attitude of wealthy Americans towards seeking residency or citizenship rights elsewhere since the COVID-19 pandemic. Many realized the value of having alternative residencies or citizenships to ensure unrestricted mobility, tax and lifestyle benefits.

This trend is driven by the desire for a more laid-back lifestyle, lower taxation, and dissatisfaction with the US immigration system's delays and complexities. Additionally, she notes that even some inbound immigrants pursuing US residency are now considering alternative options due to frustrations with the lengthy immigration proceedings.

Caribbean Galaxy Real Estate Corporation has vehemently denied the allegations leveled against it by movie producer MSR Media and Philippe Martinez in a recent RICO lawsuit, stating that it has always followed the law and industry practices in its dealings with the citizenship by investment programs of Saint Kitts & Nevis and Saint Lucia.

MSR has criticized the accusations as false and aimed at destroying its reputation, vowing to defend itself against what it calls the "selfish actions" of individuals dissatisfied with their investments. Named as a defendant, former Saint Kitts & Nevis Prime Minister Dr. Denzil Douglas has similarly dismissed the allegations as "baseless, malicious, and deliberate attacks," expressing confidence in his ability to clear his name and legacy.

Graph of the week