Vanuatu: A Growing Safe Haven Amidst Legal Turbulence
Vanuatu has attracted attention due to Lalit Modi’s citizenship acquisition amidst legal troubles in India. Its Citizenship by Investment programme, known as the ‘golden passport’ scheme, allows quick access to citizenship at a cost. This initiative significantly boosts Vanuatu’s economy, but concerns over misuse and security risks remain prevalent.
Vanuatu has garnered international attention due to reports of Lalit Modi, former Indian Premier League chairman, acquiring its citizenship. The Indian Ministry of External Affairs (MEA) confirmed that Modi has applied to surrender his Indian passport at the High Commission in London while ongoing legal proceedings against him continue. MEA spokesperson Randhir Jaiswal affirmed, “The same will be examined in light of extant rules and procedures. We continue to pursue the case against him as required under law.”
Modi, a former executive of the Board of Control for Cricket in India (BCCI), faces allegations of financial misconduct, including bid-rigging and money laundering. Departing India in 2010 amid investigations, Modi’s citizenship acquisition in Vanuatu raises concerns regarding the country’s role as a safe haven for individuals with legal troubles.
Vanuatu’s Citizenship by Investment (CBI) programme, commonly referred to as the ‘golden passport’ scheme, allows individuals to obtain citizenship through a financial contribution, starting at USD 150,000. This scheme is known for its rapid processing time, often granting citizenship in approximately one month without necessitating a visit to Vanuatu.
Currently, a Vanuatu passport provides visa-free access to 113 countries, ranking 51st on the Henley Passport Index. It offers superior access compared to countries such as Saudi Arabia and China; however, Vanuatu lost its visa-free entry to the European Union in 2023 over security concerns.
The CBI programme significantly contributes to Vanuatu’s economy, accounting for nearly 40% of national revenue. As one of the world’s poorest nations with a per capita GDP of USD 3,515.2, Vanuatu relies heavily on this income, which saw a spike during the Covid-19 pandemic, achieving budget surpluses in 2021.
Moreover, Vanuatu’s tax structure, which excludes personal income, corporate, wealth, and inheritance taxes, makes it an appealing destination for investors. By utilizing lower indirect taxes than other nations in the South Pacific, Vanuatu positions itself as an attractive offshore financial hub.
Increasing numbers of Indians and Non-Resident Indians (NRIs) are opting for Vanuatu citizenship. In the last two years, around 30 Indians have acquired Vanuatu passports, although Chinese nationals comprise the majority of applicants. NRIs find this option strategically beneficial to evade potential legal issues in India, especially as the citizenship extends to entire families and serves as a preliminary step towards acquiring citizenship from stronger passport countries.
However, Vanuatu’s golden passport programme has raised concerns regarding potential misuse by criminal syndicates, with investigations indicating its vulnerability as an entry point to the UK and EU. The European Union revoked Vanuatu’s visa-free access in light of these security risks. Despite the programme’s economic advantages, the lack of stringent background checks has led to criticisms pertaining to its security infrastructure and regulatory oversight.
In summary, Vanuatu’s citizenship programme not only serves as a mechanism for individuals like Lalit Modi to navigate legal challenges but also plays a pivotal role in the nation’s economy. While attractive for those seeking fast-tracked citizenship, it faces scrutiny for its potential misuse and regulatory inadequacies. The implications of such schemes on international security remain a pressing concern.
Original Source: english.mathrubhumi.com
