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World Cyprus files first prosecution in passports-for-investment scheme

22:15  14 may  2021
22:15  14 may  2021 Source:   aljazeera.com

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Cyprus has filed its first criminal prosecution in a controversial passport-for-investment scheme abolished last year after Al Jazeera’s corruption exposé, according to the state legal service.

a person standing in a dark room: A person holds an image of a passport during a protest against corruption in Nicosia [File: Yiannis Kourtoglou/Reuters] © The programme was terminated last year after a corruption scandal, embarrassing the island's centre-... A person holds an image of a passport during a protest against corruption in Nicosia [File: Yiannis Kourtoglou/Reuters]

“The first criminal case concerning the naturalisation of foreign investors and business people was registered at Larnaca district court,” it said in a statement on Friday.

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The action against five individuals and four legal entities, facing a total of 37 charges, was taken based on the findings of an ad hoc committee, it said, without giving names.

The legal service said “sensitive details” would not be disclosed due to the “seriousness” of the investigation.

‘Golden passport’

Last November, Cyprus dropped its so-called “golden passport” scheme after Al Jazeera television aired a documentary showing reporters posing as fixers for a Chinese businessman seeking a Cypriot passport despite having a criminal record.

Parliament speaker Demetris Syllouris and an opposition politician were secretly filmed allegedly trying to facilitate a passport for the fugitive investor.

They later resigned, although both insisted they were innocent of any wrongdoing.

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Al Jazeera reported that dozens of others who applied were under criminal investigation, international sanctions or even serving prison sentences.

Nicosia had long faced pressure from Brussels to reform the scheme over concerns it may have helped organised crime gangs infiltrate the European Union.

Cyprus had argued the investment was essential following the island’s 2013 economic meltdown.

Thousands of documents

Nicosia issued thousands of passports under the scheme, allowing applicants to acquire one in exchange for an investment of $3m.

About 51 percent of 6,779 passports issued from 2007-2020 went to recipients who should not have qualified, according to interim findings of an independent inquiry.

It said authorities had rubber-stamped citizenship requests without following due process or proper background checks.

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