Spain is a tourist attraction and there is great exposure to the risk, the head of Supervision at Sepblac, África Pinillos has said at a conference organised by Transparency International referring to the country’s Golden Visa Program.
According to Pinillos, the risks of illicit capital entering the real estate sector remain high, stressing that the main requesting countries, Russia and China often move unclean funds between different countries.
Recently, the NGO Transparency International organised a conference warning of the risks that the Golden Visa Program brings, often related to irregular affairs such as money laundering, corruption, organised crime, and tax evasion, SchengenNews Reports.
In this regard, the coordinator of the Spanish branch of Transparency International, Eka Rostomashvili told El Pais that it is unknown how many people requested it and how many were rejected.
Rostomashvili mentioned the new anti-money laundering measures adopted by Brussels recently after according to her they put golden visas in the spotlight.
Now all countries that offer these types of programs must first assess the risks they entail in terms of money laundering, as well as tax evasion and security, and then design very specific risk mitigation measures. Lastly, it also obligates everyone who participates in the transactions.
Removing Real Estate Investment Option Does Not Mean the Problem Has Disappeared
European countries’ Golden Visa Programs, often criticised for their involvement in illicit acts, give internationals the opportunity to acquire residency in exchange for financial investment.
The real estate option of the Golden Visa Program is among the most sought-after options of this program, however, Portugal and recently Spain announced that they abolished such an opportunity from this scheme.
However, Rostomashvili recalled that in spite of the fact that Portugal abolished the real estate option from its program last year, that does not mean that the problem has disappeared.
To remain competitive – this is a serious problem in all EU Member States – we see a race to the bottom in terms of standards as countries compete to offer favourable conditions for investors.
Recently, the Public Treasury through its National Risk Analysis also mentioned the risks related to Residency by Investment schemes.
It notes that the intervention of intermediaries including registrars and notaries is not enough after in practice this control does not work.
Recently, the Spanish government unfolded plans to prohibit investment in projects that lead to a surge in housing prices in Spain, in exchange for a residence acquired through the Golden Visa Program.
