Investment Migration Council

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  • Discovering the Hidden Charms of the Cayman Islands

    Discovering the Hidden Charms of the Cayman Islands

    Nestled amidst the Caribbean’s splendor, the Cayman Islands beckon not just as a tourist haven but also as a realm of exclusive advantages for those seeking high-quality living. Kristy Rivers discusses the prospects of attaining permanent residency on these islands.

    It’s no secret that the Cayman Islands is an idyllic tourism destination boasting remarkable natural beauty with its white sandy beaches, crystal-clear turquoise waters and gorgeously diverse flora and fauna. Yet, beyond its tourist charm lies an enviable lifestyle that residents savour, characterised by exceptional advantages that make living on the islands a privilege. One of the foremost draws is the Cayman Islands’ tax-neutral system that exempts individuals from paying income tax on earnings or recurring property taxes on purchased real estate. “Additionally, as a tax-neutral jurisdiction, there is no company or corporation tax, inheritance tax, capital gains or gift tax,” says Kristy Rivers, Vice President of Business Development and Leasing for Dart. Dart is the largest real estate developer in the Cayman Islands with over US$1.5 billion invested in residential, commercial, office and hospitality ventures on the islands. It also owns Provenance Properties, the official Cayman Islands affiliate of Christie’s International Real Estate, a by-invitation-only global network of luxury brokerages supported by the art auction house. Provenance is the exclusive brokerage for Dart’s properties. This affiliation also grants Provenance access to in-house data analysts, providing in-depth market statistics and the latest real estate trends.

    Routes to Residency

    Situated about 280km northwest of Jamaica, the Cayman Islands are a British Overseas Territory in the Caribbean Sea consisting of three islands: Grand Cayman, Cayman Brac, and Little Cayman. The primary hub is Grand Cayman, especially the capital, George Town. There are multiple potential routes to permanent residency, including business ownership and substantial economic investment. “The simplest and quickest path to

    permanent residency in the Cayman Islands is through the purchase of developed real estate valued at US$2.4 million or higher,” says Rivers. “The Cayman Islands might not be the cheapest or easiest residency option, but we offer substantial value once you qualify,” she adds. Beyond financial benefits, residents enjoy access to quality healthcare and education, a sophisticated telecommunications infrastructure, world class shopping, dining and entertainment, a stable government with a judicial system based on English common law, and a healthy, stable economy with a renowned financial services industry. “The islands also boast a safe environment with a low crime rate and convenient air connectivity to major cities like New York and London,” says Rivers.

    Real Estate Trends

    Interest in residency primarily comes from high-net-worth individuals, ultrahigh- net-worth individuals, and young professional families seeking a diverse cultural experience. Provenance’s sales team has witnessed a marked rise in queries regarding residential real estate, particularly from those exploring avenues for residency through investment.

    There’s a noticeable trend towards sustainable living, with growing demand for eco-friendly waterfront properties, with high-end amenities that include the latest smart home features, fully-equipped guest dwellings, builtin solar arrays, private beaches and easy access to a boating lifestyle.

    On the commercial front, businesses are gravitating towards Class-A office spaces in modern developments that prioritise employee perks, integrating diverse amenities like retail outlets, dining options, entertainment venues, schools, and healthcare facilities. Meanwhile, the islands’ economy is thriving. While sectors like tourism and construction have recovered from the pandemic’s impact, others like financial services and healthcare are expanding. The Cayman Islands are also embracing emerging technologies like fintech, crypto, and blockchain, positioning themselves as a fertile ground for technological innovation.

    This prosperity has contributed to a notable population surge, with numbers growing from 58,000 in 2013 to 84,000 in June 2023. This influx has also driven up real estate prices. “We expect an increased interest in achieving Cayman Islands residency due to the many attractive options available to individuals with means,” says Rivers. She advises seizing the opportunity while prime real estate remains accessible, acknowledging the finite availability of these coveted properties on the islands.

  • CBI Interviews Offer In-Depth Insights and Reveal Disparities

    CBI Interviews Offer In-Depth Insights and Reveal Disparities

    Sachit Kumar, Managing Director of Globe Detective Agency (GDA), believes personal interviews are an important additional step in the due diligence process and help to paint a clearer picture.

    In 2023, Caribbean Citizenship by Investment (CBI) units integrated personal interviews into their application process. This strategic decision followed discussions between representatives from the United States and the Caribbean nations, aimed at standardising practices for CBI pathways. In conversation with the IM Yearbook, Sachit Kumar emphasises the significance of personal interviews in the due diligence process, considering them to be a crucial step in gaining comprehensive insights. GDA, with a network of vetted associates in over 60 countries and offices in India and the UK, promptly adapted to the new requirement by initiating virtual interviews for the Caribbean CBI programmes.

    Navigating Discrepancies

    During these interviews, Kumar has noted instances where applicants’ answers significantly differ from the information provided in their initial applications. “This underscores the invaluable nature of personal interviews in revealing nuances that may not surface through traditional documentation,” he states.

    While discrepancies in information may raise concerns, Kumar is quick to point out that they are not always indicative of intentional deception. He suggests another plausible scenario where agents may complete specific sections of the application on behalf of clients, unintentionally leading to inconsistencies. “Therefore, to ensure a transparent and accurate assessment, agents are not to be present during interviews,” he says.

    Applicants can schedule interviews at times and in languages that suit their preferences and availability. The interview starts with an identity verification through facial comparison, thereby ensuring that the provided photograph aligns accurately with the individual’s face and passport details. Lasting between 30 minutes and one hour, the interview then progresses to cover various aspects of the applicant’s personal history, family details and even sources of funds.

    Challenging Questions

    Some of the more challenging questions during the interview process involve critical enquiries aimed at verifying the accuracy of the provided information. “For instance, applicants may be asked about the precise location of their residence. We had instances where the applicants house couldn’t be located by our on-ground associates,” says Kumar.

    Addressing the legitimacy of employment is another complex area. “In some cases, applicants provided fictitious employment details, such as a non-existent workplace or a dissolved company. Consequently, they may be asked directly about their work status, followed by a request for the precise address of their purported place of employment,” Kumar explains.

    “These discrepancies may not always be deliberate; variations or incompleteness can also contribute to the need for clarification. In Iraq, for example, house numbers are sometimes not displayed, making it difficult to locate a residence” says Kumar.

    Delving deeper into the legal realm, applicants are then queried about any ongoing or past litigation. This line of questioning aims to ensure a thorough understanding of any civil or criminal cases associated with the applicants. “Despite initial denials wherein applicants claimed no involvement in legal matters, we had to clarify with them specific cases previously uncovered by our investigative professionals,” Kumar says.

    Post-interview, GDA provides the CBI unit with a detailed transcript and a recording of the interview, ensuring transparency and accountability in the assessment process. Additional information furnished is also verified and an updated report is submitted to the CBI unit.

    Advocating Standardisation

    “I believe it’s crucial for all investment migration routes to adhere to stringent reporting standards and be governed by uniform guidelines,” he emphasises. Rigorous and dependable due diligence, he argues, ensures that CBI remains a valuable and legitimate tool for attracting investment and fostering economic growth.

    Having a thorough due diligence process validates the integrity of a country’s citizenship programme, and, most importantly, shapes the perceptions of that country in the eyes of the international market. “Not only is a country’s reputation important in shaping its diplomatic relations with other nations but is also ultimately a factor in determining the ‘strength’ of its passport,” Kumar says. In light of this, he concludes that strengthening the due diligence process through interviews should be a collective pursuit, embraced by all nations involved in investment migration.

  • Amendments to the Portuguese Nationality Law: A New Paradigm for Residence Permit Applicants

    Amendments to the Portuguese Nationality Law: A New Paradigm for Residence Permit Applicants

    Diogo Capela discusses the most recent amendments to Portugal’s Nationality Law.

    In January 2024, the Portuguese Parliament approved a significant set of amendments to the Nationality Law, marking an important turning point for those seeking to obtain a residence permit in Portugal. Among the various legislative changes presented, one of the most notable redefines the way in which the five-year period required to apply for Portuguese citizenship is counted.

    The Portuguese Nationality Law allows a person who has legally resided in Portugal for a minimum of five years to apply for Portuguese nationality. Until now, this period of time only began to count when the first residence permit was issued, which often resulted in considerable delays due to administrative delays in analysing immigration processes. Over the last few years, there have been several causes for a significant increase in delays in processing these applications, including COVID-19, the war between Russia and Ukraine and the restructuring of the Portuguese Immigration Services.

    Waiting Time

    The amendments now explicitly state that the waiting time for approval of the residence application will also be considered in the five years required for citizenship. With the new wording of Article 15(4) of the Nationality Law, it is now established that “for the purposes of counting the legal residence periods provided for in this law, the time elapsed since the moment the temporary residence title was requested is also considered if it is approved.”

    This change makes it possible to mitigate the injustice long felt by those who had been waiting, sometimes for years, for their applications to be approved and who had to wait for their residence permit to be issued before becoming eligible to obtain Portuguese citizenship. Now that the waiting time for approval of the residence application will also be taken into account during this period, an unfair loophole that has affected thousands of people is being corrected, who have been disadvantaged by the mere effect of administrative delays of which they were completely oblivious.

    Positive Effects

    This legal change could have a positive impact on all immigration processes to Portugal, particularly those applying for the Golden Visa Programme, whose processes are, in some cases, waiting more than two years.

    The new legislation will come into force one month after its publication in the Public Gazette, subject to presidential promulgation. We are still waiting for the new Nationality Regulation to be drawn up, which will clarify some of the doubts that still remain and which the wording of the law does not allow to be fully clarified, namely knowing exactly when the five years of legal residence will be counted, since the Nationality Law applies indiscriminately to all types of immigration processes in Portugal, but for each type of process there is a different type of procedure to be adopted and it is not easy to see whether the regulation will be able to distinguish between them or whether it will make the criteria for counting legal residence more ambiguous; let’s hope not!

    Predictability and Fairness

    One thing is for sure, this change represents a positive step and aims to provide greater predictability and fairness in the processes of obtaining nationality for those applying for a residence permit in Portugal, giving a very positive signal by restoring credibility to the country, which, until now, was acquiescing to unfair situations and, in some cases, promising what, from the outset, it knew it wouldn’t be able to deliver.

    For all these reasons, we believe that for many applicants for the Golden Visa and other immigration processes to Portugal, these changes represent a substantial change in their life plans and could contribute positively to an increase in foreign investment this year.

  • Citizenship by Investment: A Year of Transformation in the Caribbean

    Citizenship by Investment: A Year of Transformation in the Caribbean

    The year 2023 has ushered in a series of significant alterations in the citizenship by investment (CBI) pathways of several Caribbean nations. Yet, the pressing question remains: has the overhaul genuinely persuaded the skeptics among international partners and critics?

    In 2023, the Caribbean investment migration nations witnessed the “Brussels Effect” in full force. Coined by Columbia University Professor Anu Bradford, this term refers to the EU’s unmatched ability to shape global rules and standards, extending far beyond its own geographical boundaries. Companies and nations worldwide find themselves compelled to pay attention to the requirements of one of the world’s most influential markets. Last year, the EU exerted significant pressure and introduced rules with the potential to profoundly affect investment migration in non-EU countries.

    Historical Background

    Investment migration has been a heated topic in the European Union ever since Malta decided to offer its passport in exchange for investment in the country’s economy back in 2013. While the practice had existed for some time outside the EU, it largely escaped public scrutiny until then. However, Malta’s pathway became a focal point of discussion due to the country’s EU membership, which grants Maltese citizens not only freedom of movement but also the freedom to settle in all other EU countries.

    Citizenship by investment (CBI) first emerged in islands in the Caribbean and the Pacific, shortly after they became independent from colonial powers and were looking for new economic growth drivers. In 1984, St. Kitts and Nevis blazed the trail, pioneering the concept just a year after gaining independence to reduce its reliance on the dominant sugar industry. Fast forward to today, and the nation’s CBI pathway contributes more than 20% to its GDP.

    In the subsequent years, additional Caribbean nations, including Dominica, Grenada, St. Lucia, and Antigua and Barbuda, followed suit. One of the primary advantages linked to Caribbean investment migration pathways has been the option of visa-free travel to both the EU and the US. However, discomfort has been growing in the EU, the US, and the UK regarding this practice, due to concerns about inadequate due diligence checks, a lack of transparency, and insufficient oversight.

    US Intervention

    In the US, two Members of Congress took steps to amend the Immigration and Nationality Act with the introduction of the No Travel for Traffickers Act in 2022. This legislation aimed to disqualify any country from participation in the US visa-waiver programme if it allowed individuals to obtain citizenship through investment.

    While the initiative was not successful, the US convened a roundtable meeting, urging the five Caribbean CBI states to undergo substantial reforms. Consequently, these Caribbean nations collectively embraced several principles proposed by the US, with some countries having already voluntarily adopted some of these principles prior to the meeting.

    The agreed-upon principles included a collective approach to handling denied applications, conducting interviews with applicants, performing additional checks with the country’s Financial Intelligence Units, annual or biennial audits following international standards, requesting law enforcement help to recover revoked passports, as well as suspending processing applications from Russians and Belarusians.

    In turn, the US recognised the importance of investment migration for the prosperity and prospects of the countries, and the CBI states requested that the US Government facilitates a similar engagement with the EU and the UK.

    UK Visa Restrictions

    However, in July 2023, the UK took a decisive stance by imposing stringent visa restrictions on Dominica and Vanuatu, both of which offer citizenship by investment pathways. This measure was rooted in concerns regarding potential misuse and exploitation of these citizenship routes. Prior to this, in 2022, the UK had closed its tier 1 investor route due to significant anti money laundering (AML) apprehensions. Moreover, signaling its firm stance, the UK expressed its intent to broaden visa requirements to include passport holders from St. Lucia, Grenada, Antigua and Barbuda, as well as St. Kitts and Nevis if these countries continued offering citizenship by investment. This proactive step raised expectations of a possible echo in the European Union, potentially leading to the exclusion of these nations from the Schengen Visa waiver programme.

    Proposed EU Regulations

    In October 2023, the European Commission proposed regulations aimed at simplifying the process for the EU to suspend visa-free travel from countries offering citizenship through investment migration. Currently, the European Union has a “suspension mechanism” in place that allows member states to temporarily halt visa-free travel for a specific country in the event of a sudden and significant rise in irregular migration or security concerns.

    However, the Commission, which proposed the regulations to the European Parliament, would like to make the visa suspension mechanism easier to trigger, arguing that citizenship by investment poses a threat to “the public policy or internal security of the member states.” This threat, according to the EU, encompasses issues such as organised crime infiltration, money laundering, tax evasion, and corruption.

    St. Kitts and Nevis’ Measures

    Meanwhile, in response to the international pressure, some Caribbean countries took action to safeguard investor benefits. In July 2023, St. Kitts and Nevis announced several changes to its pathway. To strengthen due diligence, the country introduced mandatory interviews for all applicants, either conducted virtually or in person, with checks conducted by independent professional firms.

    St. Kitts and Nevis’ Prime Minister Dr. Terrence Drew stated that the government has “done some deep introspection,” analysed the programme, spoken to its international partners and decided to show the world that the country’s “citizenship is not accessible to those who do not value our citizenship or understand what St Kitts and Nevis has to offer the world.”

    St. Kitts and Nevis also introduced the Sustainable Island State Contribution (SISC) as a new investment option. The SISC replaces the previous Sustainable Growth Fund (SGF) and aims to advance the country in seven key areas, including local food production, green energy, economic diversification, sustainable industries, the creative economy, pandemic recovery, and social protection. Moreover, it raised the minimum investment requirement across all options. For example, contributions for the SISC start at $250,000 for one applicant and increase for spouses and dependents. The minimum investment for the Developer’s Real Estate Option is now $400,000, with a requirement to hold the property for seven years before it can be resold to another potential CBI applicant.

    “While we have always been the benchmark of the global investor immigration industry, we understand that in order to remain as one of the most soughtafter economic citizenship programmes in the world, we need to continue to evolve and forge a path for ourselves that is sustainable in the long term,” Michael Martin, who heads St. Kitts and Nevis’ CBI unit, added.

    Dominica’s Changes

    Elsewhere, Dominica also unveiled a series of comprehensive changes to its CBI pathway. One of the most noteworthy changes is the introduction of mandatory interviews for all CBI applicants over the age of 16. Furthermore, citizens from the Kurdistan region in Iraq, Russia, and Belarus will not qualify for citizenship in Dominica. These regions have been flagged as high risk by international security authorities.

    The government also introduced legislation to provide an enhanced due diligence fee for applicants from specific countries. This fee will provide additional resources to thoroughly scrutinise applicants from these regions, ensuring that the pathway maintains the highest standards of security.

    Speaking on these developments, Dominica’s Prime Minister Roosevelt Skerrit affirmed the country’s commitment to ensuring the highest standards of due diligence and risk mitigation in the CBI pathway. “We take this matter very seriously and will increase our efforts in showcasing our robust due diligence and risk mitigation efforts on all fronts,” the Prime Minister said.

    In addition, the government strengthened its Citizenship by Investment Unit (CBIU). A US-based firm has conducted extensive training in antimoney laundering and counter-terrorism financing for all CBIU staff. The Unit was also restructured under the supervision of a compliance officer, ensuring that all procedures were updated, quality control measures strictly followed, and all IT systems upgraded.

    Further, Dominica announced its intention to revoke the citizenship of those who made false declarations or misrepresentations in their applications. This measure particularly targets applicants with previous visa rejections from countries with which Dominica has visa-free treaties. Moreover, Dominica implemented biometric travel documents and updated its naturalisation certificate with enhanced security features. Additionally, it has issued regulations to restrict citizens from changing their names to maintain transparency and security.

    Grenada and St. Lucia’s Enhancements

    Following their Caribbean counterparts, Grenada also introduced mandatory interviews for all applicants over the age of 17, while St. Lucia also added a new interview and identity verification stage to its CBI application process. Along with the interview, an additional due diligence fee of $500 has been proposed; however, only the primary applicant will be required to attend the interview. The St. Lucian government stated this change aims to “enhance the authentication of critical biodata information and eliminate any information gaps that can potentially exist in the application process.”

    What’s Next?

    The proposed and implemented changes within the Caribbean mark a positive evolution. However, the pivotal concern remains: will these alterations sufficiently meet the expectations of the international community? Industry experts highlight that the changes already encompass many of the recommendations outlined in a joint report published by the OECD and the Financial Action Task Force (FATF) in November 2023.

    Moreover, an important aspect to consider is the enduring appeal of these pathways in light of potential restrictions on visa-free access to other regions. While specialists in investment migration emphasise that visa-free travel is just one component of the larger equation, the loss of this privilege will undoubtedly impact demand and subsequently harm the revenue of Caribbean nations. Hence, raising standards becomes imperative for the Caribbean countries to safeguard the future of their investment migration pathways.

  • 6 Things You Did Not Know about DD(or maybe you did)

    6 Things You Did Not Know about DD(or maybe you did)

    In a world awash with information, due diligence stands as a critical shield against the unknown, but it’s not a mere checkbox exercise. Kieron Sharp, CEO of FACT Due Diligence, sheds light on six essential principles for robust due diligence.

    1. Due diligence is not a tick-box exercise.

    Many people use the phrase due diligence very glibly. By that I mean they throw the phrase around and think that a quick check across a search engine will tell them what they want to know. They then trust that it will satisfy regulatory bodies, clients, governments and colleagues. And there are many areas where it will, and many times when it will, because these processes are not properly checked. Superficial examination will just give an appearance of due diligence having been carried out and for many that is enough. There are due diligence providers who make a successful business out of providing ‘just enough’ information and if the client is satisfied, the whole cycle repeats itself ad-infinitum. At best this could be called ‘due diligence lite’.

    2. English language searching on its own is insufficient.

    Despite English being the language of international business and the predominant language of the internet, true searching needs native language ability (i.e., the language of the person being researched) to uncover information and material which would otherwise remain hidden. If you are serious about due diligence, investment is needed in such language skills. How many due diligence providers have substantial in-house language capabilities?

    3. Do not believe everything you read.

    The deeper you delve the more information you find. Of course, that is obvious. But how much of what you uncover can you trust. The phenomenon of social media has provided access to a wealth of information unheard of 20 years ago. That all must be treated with caution as quoting something uncovered online can give someone a misleading impression that the information is accurate. Corroboration is therefore essential, but it can be difficult to corroborate something that has been posted online (for example). So, treat everything with great caution and maintain the belief that it is unverified until it is. And when it is substantiated, state the level of substantiation. The relevance of any information is directly proportional to its analysed veracity.

    4. Analysis – what does it mean?

    It is all very well finding all this information, whether it is a physical product or found via online research, but is there more that can be done? In itself, the information can provide an early indication to a client what they might be dealing with. But that is the easy part. To truly be affective as a due diligence provider you need to turn information into intelligence, and this requires analytical skills and expertise. Highly trained analysts can give insight and understanding into what has been uncovered. There is a night and day difference between the outcomes when you compare analysed intelligence to un-analysed information. Software tools, developed over many years, are an analyst’s best friend. Using this software, their skills in this area can turn the information and intelligence into different formats such as graphs, timelines and charts, which provide a clear picture of what can often be a jumble of information. Personal information, businesses, family members, addresses, vehicles, associates and more can all be linked, demonstrating, for instance, a subject’s complete lifestyle – a boon to the reader in terms of understanding. And that is true whether the subject is living a criminal lifestyle or is a legitimate, honest citizen.

    5. Intelligence to evidence.

    What does this mean? It is rare that pure due diligence research will be used as evidence as the bulk of due diligence enquiries are commissioned to simply understand as much knowledge about a person or entity as possible. But what if information suggesting criminal offending is uncovered? It is incumbent on the researcher to report the offending to the police. What then becomes of the initial intelligence or information? Collating and keeping the information to later provide as evidence could well be key. Experienced and highly trained investigators, researchers and analysts will know how to do this and will ensure the information is retained in an evidential format.

    6. Artificial Intelligence is leading to the end of society as we know it.

    If there is one subject that will not go away as a news article it is Artificial Intelligence or AI. To some it is a wondrous new development which will transform our lives. To others it is a dangerous development which is already out of control. But pure AI is not yet with us, and AI used in online due diligence research is nothing more than a faster and possibly more complete way of finding information. It scrapes the data, searching for relevant information, just like word searching, but is hugely more powerful and potentially more revealing – much more revealing. However, this data/information/ intelligence has to be treated with even more caution. Please go back to the section above on corroboration – it is dangerous just to accept as accurate what is found, and this is magnified greatly by AI data searching.

    Due diligence is a highly skilled and resource intensive process which requires specialist knowledge and investment in the appropriate tools to do the job. Do not cut corners or try to do it on the cheap.

  • 3 Questions for 2024

    3 Questions for 2024

    As 2024 unfolds, the world faces a series of pressing questions and challenges that reverberate across various domains. Cybersecurity threats, the far-reaching impact of economic shifts and A.I. , we explore issues that will impact investment migration in 2024.

    1. Cyberattacks are proliferating, causing trillions of dollars of damage every year. How safe is investment migration data?

    As we step into 2024, investment migration firms are facing an increasingly complex landscape of cybersecurity threats. These firms traditionally hold sensitive client data, including information related to the source of funds and source of wealth, which makes them prime targets for cybercriminals looking to exploit vulnerabilities and steal valuable information. Cybersecurity threats are constantly evolving, and investment migration firms need to stay ahead of the curve to protect their clients’ confidential information. Here are some of the most significant cybersecurity challenges these firms will face in 2024:

    Ransomware Extortion

    Ransomware attacks have been a persistent threat, but experts believe that in 2024, they are becoming even more sophisticated. Double extortion attacks, where cybercriminals steal sensitive data before encrypting it, are on the rise. This approach makes it harder for firms to recover their data without paying a ransom, posing a significant risk to the security and reputation of investment migration firms.

    Cloud Third-Party Threats

    As investment migration firms increasingly rely on cloud services to manage client data, they become vulnerable to attacks targeting cloud service providers. Cybercriminals can exploit trust relationships between firms and their service providers, potentially gaining access to sensitive client information. Understanding the shared security model of the cloud and implementing best practices is essential for mitigating this risk.

    Mobile Malware

    With the widespread use of mobile devices, mobile malware has emerged as a growing threat. Cybercriminals are creating malicious versions of legitimate apps, making them difficult to detect. Investment migration firms must educate their employees about the risks of downloading apps from unofficial sources and implement robust mobile security measures.

    Wipers and Destructive Malware

    While ransomware garners much attention, wipers and other destructive malware can have even more devastating consequences. Instead of encrypting data for ransom, wipers delete it entirely, causing significant business disruptions. Investment migration firms should focus on data backup and recovery strategies to mitigate the impact of such attacks.

    Weaponisation of Legitimate Tools

    Cybercriminals are increasingly using legitimate penetration testing and system administration tools to infiltrate systems. This approach allows them to go unnoticed by signature-based detection tools. Investment migration firms must stay vigilant and monitor their networks for any unusual activity or tool misuse.

    Zero-Day Vulnerabilities in Supply Chains

    Zero-day vulnerabilities, where no fix is available for a known issue, pose a significant risk, especially in the software supply chain. Investment migration firms should conduct thorough assessments of their software vendors and third-party dependencies to identify and address potential vulnerabilities promptly.

    Mitigating Cybersecurity Risks

    To address these cybersecurity challenges effectively in 2024, experts suggest that firms consider streamlining cybersecurity efforts by adopting a single security platform with all required capabilities. This consolidation improves efficiency and makes it easier to monitor and manage security infrastructure. Companies should also shift the focus from detection to prevention by proactively identifying and blocking inbound threats. This approach reduces the window of opportunity for attackers to exploit vulnerabilities. Firms also need to ensure that their cybersecurity measures cover all potential attack vectors, including cloud services, mobile devices, and IoT devices.

    Investment migration firms must remain vigilant and adaptable in the face of evolving cybersecurity threats. The consequences of a data breach can be devastating, and agents, service providers and government units must be prepared to defend against threats originating from around the world. Comprehensive threat protection, continuous monitoring, and access to up-to-date threat intelligence are critical components of every robust cybersecurity strategy in 2024 and beyond.

    2. In a world facing mounting economic pressures, the global economy is at a crossroads, with new challenges and uncertainties on the horizon. How will these economic shifts impact investment migration?

    The global economy today is teetering on the edge. Despite its relative resilience in the face of significant shocks like the Covid-19 pandemic, skyrocketing living costs, energy crises, rampant inflation, and Russia’s war in Ukraine, the eruption of hostilities between Israel and Hamas on 7th October 2023 served as a stark reminder of how daunting it has become to protect economies from ever-more frequent and unforeseeable global shocks.

    The Forecast

    Global economic growth is expected to slow to 2.9% in 2024, according to the IMF’s October World Economic Outlook. The figure, down from growth of 3.5% in 2022 and 3% in 2023, remains well below the historical average (2000–19) of 3.8% and marks the lowest growth forecast in decades.

    Advanced economies are expected to slow from 2.6% in 2023 to 1.4% in 2024 as policy tightening starts to bite. Emerging market and developing economies are projected to have a modest decline in growth from 4.1% in 2022 to 4% in 2024.

    Global inflation is forecast to decline steadily, from 8.7% in 2022 to 5.8% in 2024, due to tighter monetary policy aided by lower international commodity prices.

    The Unknown

    China’s looming real estate crisis, precarious banking stability, and volatile commodity prices amid climate and geopolitical shocks pose major threats to taming inflation.

    Moreover, the Israel-Hamas conflict, like past Middle East wars, holds the potential to disrupt the global economy and even push it into recession if more nations get involved. Bloomberg Economics predicts that in such a scenario, oil prices could skyrocket to $150 per barrel, while global growth could plummet to 1.7%, resulting in a trillion-dollar loss in world output.

    The Middle East’s significance as an energy supplier and a crucial shipping route amplifies the global impact of this strife, reminiscent of the 1973 Arab-Israeli war that led to an oil embargo and stagflation in industrial economies. Rising energy prices could also impact the upcoming US presidential election, where gasoline prices heavily sway voter sentiment.

    In the broader region, tensions are simmering. Egypt, Lebanon, and Tunisia grapple with economic and political gridlock. Israel’s retaliation to Hamas’ assault has already sparked protests in multiple regional nations. Analysts believe that the leap from anti-Israel demonstrations to anti-government upheaval in many countries can be swift. A déjà vu of the Arab Spring, the wave of protests that toppled governments in the early 2010s, is not out of the question.

    One undeniable truth: dreams of a stable Middle East lie in ruins. Instead, it confronts a fresh inferno. Russia’s Ukraine invasion, the US-China trade showdown, and escalating Taiwan tensions signal the return of geopolitics as a potent force shaping economic and market destinies. The IMF, once more, raised concerns about a world fragmenting into geopolitical factions that threaten to stifle global trade and economic prosperity.

    The Impact on IM

    The current economic landscape carries profound implications for investment migration. The world could be on the brink of a new sovereign debt crisis as geopolitical tensions escalate. One pressing concern is the potential impact of China’s slowing economy on a global scale, with the IMF warning that nations integrated into the Asian industrial supply chain may be vulnerable to this loss of momentum.

    Adding to the complexity is the forecast that trillions of dollars will be needed over the next decade to address the alarming effects of climate change in developing nations. Amidst ongoing global conflicts, investment migration offers countries a means to bolster their public finances and support economic growth without incurring additional debt. These economic and geopolitical factors collectively create an environment of persistent uncertainty, driving demand among high-net-worth individuals for alternative residences and citizenships. Henley and Partners estimate that in 2024, 128,000 millionaires will seek to relocate. This significant migration of human capital and wealth will exert a notable impact on the economic and societal dynamics of both the jurisdictions these affluent individuals depart from and those they invest in.

    3. The meteoric rise of ChatGPT in 2023 quickly became a sensation. What will AI bring us next?

    The year 2024 is poised to be a significant juncture in the evolution of artificial intelligence (AI). Investment migration is not new to AI – for example due diligence service providers have long been using and experimenting with AI.

    The integration of AI into immigration processes presents the potential for unprecedented efficiency and accuracy gains. Nonetheless, challenges persist, encompassing the assurance of data accuracy, elimination of biases, maintenance of transparency, upholding data privacy, and accountability for potential errors. What exactly can we anticipate from AI in 2024?

    Augmented Working

    Augmented working takes the spotlight in this transformation, with AI becoming a key collaborator across diverse sectors. While recent attention has focused on AI’s content creation capabilities, the upcoming year will see a broader spectrum of applications. This includes leveraging

    AI for advanced analytics, predictive insights, coding through automation and debugging, and employing sophisticated virtual assistance to enhance customer service. As AI integrates further into professional spheres, there is a pressing need to redefine traditional job roles, emphasising training programmes to effectively harness AI’s potential.

    A significant stride in AI advancement will be the emergence of truly multi-modal AI systems capable of seamlessly integrating diverse data types like text, visuals, and audio. This innovation promises a more natural and intuitive user interface, offering sophisticated virtual assistants adept at handling complex queries, customer service bots capable of interpreting emotions and intentions, and the creation of innovative educational tools, to name just a few. These multi-modal systems represent a leap towards AI that can interact with the world akin to human perception and cognition, opening new dimensions in AI applications and user experiences.

    AI Regulation

    Yet, this transformative AI landscape is not just about technological prowess; it necessitates robust and evolving legislative frameworks to balance innovation with responsibility. Countries around the world are currently crafting AI governance strategies and regulatory frameworks, emphasising ethical deployment, risk mitigation, and transparency. For businesses, staying agile and well informed is crucial to navigate these evolving legal environments effectively.

    Quantum AI

    A ground-breaking development poised to revolutionise industries is Quantum AI. Leveraging quantum mechanics, Quantum AI operates using qubits, allowing exponential increases in processing power by existing in multiple states simultaneously. This capability enables Quantum AI to analyse complex datasets at unprecedented speeds. This technology is transitioning from a theoretical marvel to a practical tool, offering businesses and governments unparalleled insights and decision-making capabilities, thereby paving the way for new frontiers in innovation and efficiency.

    IM Approach to AI

    Yet, some businesses who spoke to the IM Yearbook revealed a cautious stance toward AI adoption. They emphasised that much of the technology still requires refinement. Moreover, in the public sector, for example, in governments units, the uptake of new technologies traditionally moves at a slower pace. Additionally, there’s an observable reluctance among workers. Despite the technology’s potential to alleviate mundane tasks, many fear the looming possibility of being replaced in the long term. Despite these reservations, 2024 foresees widespread AI integration. Now more than ever, future success hinges on smartly embracing changes.

  • Investment Migration Council Launches New WhatsApp Channel

    Investment Migration Council Launches New WhatsApp Channel

    The Investment Migration Council (IMC) is thrilled to announce the launch of its NEW WhatsApp channel. This innovative new platform is designed to bring members and stakeholders timely updates and developments directly from the only global Investment Migration Association.

    In an era where information is paramount, the IMC’s WhatsApp channel aims to streamline communication, ensuring that all interested parties have instant access to the latest news, policy changes, and industry insights. This move underscores the IMC’s commitment to leveraging technology to enhance connectivity and engagement within the investment migration community.

    Subscribers to the WhatsApp channel will receive exclusive content, including updates on policy, curated news, upcoming events, and key industry reports. This initiative is part of the IMC’s ongoing effort to provide value and up-to-date information to its members, fostering a more informed and connected investment migration ecosystem.

    To join the IMC WhatsApp channel and stay ahead in the dynamic field of investment migration, members and interested parties are invited to connect through the IMC website or directly via WhatsApp.

    About the Investment Migration Council

    The Investment Migration Council (IMC) is the global authority on investment migration, dedicated to promoting best practices and enhancing public understanding of investment-related migration programs.

    Contact:

    Investment Migration Council

    16 rue Maunoir

    1211 Geneva

    Switzerland

    Office: +41 22 533 1333

    Email: info@investmentmigration.org

  • United Kingdom: UK Immigration and borders watchdog sacked for leaking critical reports

    United Kingdom: UK Immigration and borders watchdog sacked for leaking critical reports

    Source: bbc.com

    Published: 21 February 2024

    Home Secretary James Cleverly has sacked the government’s immigration watchdog after details of critical reports appeared in newspapers.

    The Home Office said David Neal had “breached the terms” of his role and leaked confidential information.

    Mr Neal was quoted in The Daily Mail about security checks on private jets.

    Meanwhile, sources close to him said he was responsible for details of another unpublished report about visas for care workers appearing in The Times.

    The comments made by Mr Neal in the Mail triggered an urgent question in Parliament on Tuesday, with immigration minister Tom Pursglove telling the Commons the Home Office “categorically” rejected claims that hundreds of high-risk flights had landed in the UK without security checks.

    Mr Neal told the paper he had seen Home Office data suggesting that 21% of private jets classified as high risk, which came into London City Airport, were inspected by immigration officials last year.

    “This is a scandal, and incredibly dangerous for this country’s border security”, he was quoted as saying.

    But Mr Pursglove said UK Border Force performed checks on “100% of scheduled passengers arriving in the UK and risk-based intelligence-led checks on general aviation”.

    He added that an issue with the data meant some flights had been classified as high-risk when they should have been low-risk.

    He described it as “deeply disturbing that information which has no basis in fact was leaked by the independent chief inspector to a national newspaper before the Home Office had the chance to respond”.

    A Home Office spokesperson said: “We have terminated the appointment of David Neal, the independent chief inspector of borders and immigration (ICBI), after he breached the terms of appointment and lost the confidence of the home secretary.

    “The planned recruitment process for the next ICBI is in progress.”

    Mr Neal, whose tenure was due to end on 21 March, told the Times on Tuesday that he had not made the decision to speak to the media “lightly”. He added: “But I’ve been forced into this because my reports aren’t being published.”

    “I’ve spent all my working life protecting this country, I’ve identified a security failing and I’ve brought it back to the Home Office,” he is quoted as saying.

    “There’s a strong public interest here and that’s why I’ve done what I’ve done. The border is there to keep us safe, it’s critical that there are clear auditable risk decisions made to protect every one of us in the country.”

    Shadow home secretary Yvette Cooper, who tabled the question, said this was an example of “total Tory chaos on borders and immigration”.

    “A series of Conservative home secretaries have sought to bury uncomfortable truths revealed by the chief inspector about our broken borders, and shockingly they are still sitting on 15 unpublished reports – stretching back to April last year,” she said.

    Ms Cooper also called on Mr Cleverly to “publish those reports in full”.

    The government website lists 14 ICIBI inspection reports that are awaiting publication. Ms Cooper’s office is understood to be including the inspector’s annual report in the total.

    The Liberal Democrats’ home affairs spokesperson Alistair Carmichael also called for the reports to be published “without delay”.

    “This is a desperate move from a Conservative government terrified of proper scrutiny of their record of failure on borders and immigration,” he added.

    Mr Neal is a former army officer who commanded a brigade of the Royal Military Police.

    The report about the social care system – details of which appeared in the Times – is understood to reflect Mr Neal’s concern about the Home Office’s oversight of compliance with the immigration rules by social care employers.

  • Portugal’s Residency Visas

    Portugal’s Residency Visas

    An article written by Rogério Fernandes Ferreira, Founder & Managing Partner and Duarte Ornelas Monteiro, Managing Senior Lawyer of RFF Lawyers

    The Golden Visa changes are not yet in force, as they still need to be approved by the Portuguese President of the Republic and, afterwards, published in the “National Republic Gazette”. However, as analyzed in this article, not only some of the Golden Visa modalities will be maintained – standing as an opportunity for future investors -, as there are different possible solutions for people and investors with the intention of benefiting from the wave of the Portuguese economic growth and development and obtaining a Portuguese residency authorization, with all its associated advantages.

    WHY PORTUGAL

    Not only for its climate, safety and beaches, but also due to the investment opportunities and the tax benefits that can offer, Portugal stands as an opportunity for international migrants.

    Despite of the consequences of an inflation crisis around the world, the Portuguese economy is still showing signs of a good recovery after the Covid situation.

    Thus, while the average economic growth of the European Union in 2022 stands at 3.6% (3.5% in the Eurozone), Portuguese GDP grew at an expressive rate of 6.7%. For 2023, the European Commission forecasts a Portuguese growth of 2.4%, more than the double of the averages predicted for the European Union (1%) and the Eurozone (1.1%).

    Simultaneously, in April 2023, Portuguese unemployment rate was set on 6.4%.

    In terms of investment opportunities, the Portuguese real estate market continues to grow, with the entry of new international companies and individuals.

    In 2022, property investment in Portugal increased by 67%, with the highest growth in Southern European countries (Spain, Italy and Portugal).

    Alongside with that, the possibility for people who were not Portuguese Tax Residents in the last 5 years of applying for the Non-Habitual Resident Tax Regime encloses undeniable advantages related to income taxation.

    Under this Regime employment income and self-employment income rendered from high value-added activities are subject to PIT at a flat 20% tax and most of the income earned abroad will be exempted in Portugal, as long as certain conditions are verified.

    The Golden Visa is also a potential attraction to foreign investors interested in obtaining a Residency Authorization that allow them to circulate in the Schengen Area and, ultimately, depending on other conditions, obtaining the Portuguese citizenship.

    GOLDEN VISA RECENT LEGISLATIVE PROCESS (UPDATE)

    Recently, there were some developments on the Golden Visa legislative process that will change this regime for future applications.

    Due to the housing difficulties that the average working population was facing in Portugal, caused, along with other circumstances, by the effects of inflation on the housing market, the Portuguese Government announced a proposal of legislation with the intention of revoking the Golden Visa program.

    This proposal was discussed and voted by the Portuguese Parliament, alongside with others measures connected to the intended damage management of the housing crisis in Portugal.

    The final document approved foresees the termination of three Golden Visa modalities but maintains five investments as eligible for future Golden Visa applications.

    GOLDEN VISA RECENT LEGISLATIVE PROCESS (UPDATE)

    Recently, there were some developments on the Golden Visa legislative process that will change this regime for future applications.

    Due to the housing difficulties that the average working population was facing in Portugal, caused, along with other circumstances, by the effects of inflation on the housing market, the Portuguese Government announced a proposal of legislation with the intention of revoking the Golden Visa program.

    This proposal was discussed and voted by the Portuguese Parliament, alongside with others measures connected to the intended damage management of the housing crisis in Portugal.

    The final document approved foresees the termination of three Golden Visa modalities but maintains five investments as eligible for future Golden Visa applications.

    WHICH GOLDEN VISA MODALITIES WILL END

    If the President of the Republic approves this legislation, the following Golden Visa modalities will not be accepted for future applications:

    • The transfer of € 1,500,000.00 to a Portuguese bank account;
    • The acquisition of a real estate property; and
    • The acquisition of a real estate property accompanied by the execution of rehabilitation works.

    The legislation draft also states that the termination of these modalities will not affect pending applications, future renewals and family reunification requests.

    WHICH GOLDEN VISA MODALITIES WILL BE MAINTAINED

    In contrast, the following investments will still be valid for the Portuguese Golden Visa program:

    • The creation of at least 10 jobs;
    • Capital transfer on the amount equal to or above to € 500,000.00 for investing in research activities developed by public or private scientific research institutions integrated in the Portuguese scientific or technologic system;
    • Capital transfer on the amount equal to or above to € 500,000.00, for the constitution or the reinforcement of the share capital of a commercial company with head office in the Portuguese territory, in conjunction with the creation or the maintenance of five permanent working jobs;
    • Cultural donation in the amount of € 250,000.00 in projects certified by the Ministry of Culture;
    • Investment of € 500,000.00 for the acquisition of units of investment funds whose maturity, at the moment of the investment, is, at least, of five years and, at least, 60% of the investments is realized in commercial companies with head office in the national territory (with the exclusion of real estate funds).

    However, any of these investments will not be eligible if the investment is, directly or indirectly, destined to the Real Estate market or Real Estate companies.

    THE RESIDENCY VISA: AN ALTERNATIVE TO THE GOLDEN VISA

    Although the maintenance of certain Golden Visa modalities, some people who are interested in relocating to Portugal may find other Residency Visa (“D-Visa”) as the most appropriate solution for their specific case.

    After 5 years of residence in Portugal, it is also possible to apply for the permanent residency authorization and/or for the Portuguese nationality.

    The Residency Visa has the advantage of, generally, not demanding an investment with minimum thresholds but requires longer minimum periods of staying in the Portuguese territory.

    It can be requested before a Portuguese Consulate and, after obtained, allows its applicant to request a residency authorization before the Immigration Authorities in Portugal.

    After 5 years of residence in Portugal, it is also possible to apply for the permanent residency authorization and/or for the Portuguese nationality.

    Considering that there are different types of Residency Visas, applicants will need to select the right Residency Visa’s modality, according to the activity performed.

    In this sense, you may find below some of the main modalities of this Residency Visa.

    THE PASSIVE INCOME (d7)

    The Passive Income Visa, well known as the “D7”, is one of the most attractive Residency Visas.

    To obtain it, the applicants will only need to demonstrate income from a passive source, such as pensions, retirements, investment funds, stocks, or rental contracts, among other alternatives.

    THE DIGITAL NOMAD

    The Digital Nomad Visa was an innovation on the last changes on the Portuguese Immigration Legislation.

    This Visa is aimed for people who work on a remote basis for non-Portuguese entities or individuals.

    The applicant will be required to demonstrate average monthly earnings in the last three months from employment or self-employment activity in an amount of at least €3040.00 (value for 2023).

    HIGHLY QUALIFIED WORKER VISA

    The Highly Qualified Worker’s is a fast-tracked Visa created with the intention of attracting high value-added professionals and academics to work in Portugal.

    Applicants will need to demonstrate the existence of an employment contract, a freelance contract or a promissory contract with a Portuguese entity or individual.

    This sub-modality also includes the well-known “Tech-Visa”, which provides a fast-tracked process for expats employed in companies and start-ups certified by the Portuguese Agency for Competitiveness and Innovation.

    In these cases, the company itself can initiate the relocation process on behalf of the employee.

    EMPLOYEMENT ACTIVITY VISA (D1)

    The Employment’s Visa requires the demonstration to the Portuguese Consulate of the existence of an employment contract or promissory contract between the applicant and a Portuguese entity or individual.

    FREELANCER OR ENTREPRENEUR VISA (D2)

    The Freelancer or Entrepreneur’s Visa is aimed for people who perform a freelance activity and already hold a contract, or a promissory contract signed with a Portuguese entity or individual, or for people who incorporate a Portuguese company.

    Regarding the incorporation of a Portuguese company, it is not established any minimum threshold for the share capital nor for the investment executed.

    FAMILY MEMBERS (REUNIFICATION)

    Applicants of any type of Residency Visa will not need to wait to have their residency situation consolidated in Portugal to bring their family members.

    In this sense, spouses or persons with whom the applicant is living in a civil partnership for more than 2 years, minor children or stepchildren and economic dependent adults (such as adult children and parents) will be entitled to request, at the same time of the main Residency Visa application, the Family Member Residency Visa.

  • Davos 2024: IMC’s Role in Promoting Sustainable Development

    Davos 2024: IMC’s Role in Promoting Sustainable Development

    Published by Bruno L’ecuyer FIMC, Co-Founder & Chief Executive of the Investment Migration Council

    At the pinnacle of global events, the World Economic Forum (WEF) stands out for its unparalleled visibility and influence. Recognised for its political clout, the WEF offers a unique platform for interaction among entrepreneurs, decision-makers, leaders, and experts. Within this dynamic space, ideas are exchanged, laying the groundwork for transformative solutions to address the world’s most pressing challenges. The seeds of inspiration planted at Davos have the potential to blossom into innovative strategies that reshape our global landscape.

    As the Chief Executive of the Investment Migration Council (IMC), I had the distinct honour of representing our organisation at this year’s prestigious WEF meeting. Renowned for its unparalleled influence and global reach, this event provides a unique platform for leaders, decision-makers, and experts to convene and address the world’s most pressing issues.

    I was privileged to receive an invitation from the Climate Vulnerable Forum (CVF) and Vulnerable Twenty Group (V20) Leaders’ Investment Roundtable, held on the sidelines of the WEF Annual Meeting. This roundtable, attended by heads of state and influential high-net-worth individuals, focused on exploring innovative private financing solutions to address climate risks and promote green transition opportunities.

    Ghana currently chairs CVF-V20, with Barbados taking on this role shortly. The alliance is known for integrating the 1.5°C goal of the Paris Agreement and for promoting climate action, sustainability, and prosperity through investment and economic cooperation partnerships.

    The CVF + V20 membership comprises 68 developing countries most threatened by the global climate emergency, representing 1.74 billion people and USD 3.8 trillion in gross domestic product.

    During my participation at the Climate Vulnerability Forum, I emphasised the crucial role of investment migration in supporting vulnerable economies. Investment Migration (IM), when properly regulated and managed by certified professionals, can provide much-needed financial resources to countries facing economic vulnerabilities exacerbated by climate change.

    The CVF + V20 theme aligns seamlessly with the IMC’s commitment to the aims and mission cherished by the Economic and Social Council of the United Nations (ECOSOC), where the IMC has held a Special Consultative Status since 2019.

    Davos provides a platform for smaller and economically unstable nations to have a voice, especially those affected by climate change. Despite their limited resources and isolation, such nations can play a significant role in global transformation. Well-regulated and managed by recognised IM-trained professionals, investment migration can help them fulfil their commitments to achieving the United Nations’ Sustainable Development Goals (SDGs), bridging the gap between their financial needs and available liquidity. Just as Davos, despite its small size, has historically sparked global movements for change, small nations can also contribute significantly to the global community.

    Nestled in the serene Swiss mountains, Davos has consistently demonstrated that impactful change can originate from seemingly modest beginnings. Despite its small size and remote location, Davos has been a catalyst for global dialogue, drawing leaders from diverse sectors to address political, social, and economic challenges, making it a pivotal forum for shaping the world’s future.

    The theme chosen for the 2024 World Economic Forum conference was “Rebuilding Trust,” resonating with the Behavioural Science Executive Education Workshop organised by IMC’s educational arm (IMCET) in Vienna, coincidentally just a few weeks before the Davos meeting. IMC members from various countries attended this training event, primarily focused on building trust, perfectly complementing the theme of Davos and creating a meaningful connection between the two events.

    Davos underscored the growing significance of artificial intelligence (AI), and at the IMC, we recognise the immense potential of harnessing AI for applicant screening and due diligence in investment migration processes.

    The imperative to rebuild trust was a central theme at Davos 2024, acknowledging the heightened global division and conflicts. The interconnection of economic revitalisation, climate change, and responsible AI use underscores the need for holistic and collaborative solutions.

    During my networking at Davos, I had the opportunity to meet several attendees, including fellow IMC members. We discussed how investment migration can provide solutions, particularly for countries with vulnerable economies, and create debt-free capital injection opportunities.

    Investment Migration is a financial lifeline for many states. Citizenship or Residency programmes contribute significantly to the GDP of several countries. While recognised by the International Monetary Fund (IMF), these programmes empower developing countries, particularly smaller ones, to fund key government activities in line with UN Sustainable Development Goals.

    As Davos 2024 offered a glimpse into the future, the anticipation for Davos 2025 holds the promise of an even more significant opportunity for the IMC and its members to make their voices heard on Investment migration as a global force for good in this world.

    IMC is committed to shaping the future of investment migration through education, improved regulation and harmonised due diligence. We will continue to work to build trust, promote international cooperation, and contribute to global progress. At IMC, we envision a future where investment migration is embraced as a catalyst for growth.

    Looking ahead, the IMC anticipates Davos 2025 as a pivotal moment to elevate its influence further and contribute to positive global transformation.

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