Vanuatu’s citizenship sale programs are showing unexpected resilience and growth despite facing a series of challenges in recent years, largely driven by geopolitical instability. The citizenship-by-investment sector has emerged as a critical revenue stream for the Vanuatu government, even as concerns regarding the integrity of these operations linger.
In 2024, Vanuatu became the first country to lose its visa-free access to the European Union due to worries over its citizenship schemes, causing fears of significant fallout for the industry. However, agents involved in the citizenship programs have noted that this loss has not substantially affected their operations. They emphasize that the appealing features of Vanuatu’s offerings remain attractive, and passport holders can still seek entry into Europe through other means.
Conversely, being placed on the EU’s anti-money laundering blacklist poses a greater challenge, according to Francesca Grillon of Yawha & Associates. This status complicates the transfer of foreign currency funds, particularly after the Commonwealth Bank of Australia ceased transfers for agents tied to the citizenship programs. As a result, Melten Menauke from Smart Citizenship Vanuatu pointed out that this situation has created obstacles for the government in managing donations and fees from foreign applicants, with the National Bank of Vanuatu facing difficulties in securing a correspondent bank for U.S. dollar transactions.
In response to rising corruption concerns surrounding citizenship sales, Vanuatu’s government instituted a Commission of Inquiry in 2024. However, the inquiry’s report has yet to be made public, raising issues of transparency and prompting calls for greater accountability in the citizenship processes.
Jenny Ligo, chairperson of Women Against Crime and Corruption, expressed her worries regarding the political maneuvering surrounding citizenship programs, urging for oversight by neutral parties to restore public confidence. While the government is also grappling with natural disasters and necessary political reforms, improving the integrity of its citizenship-by-investment initiatives has become increasingly important. Steps are being taken to better align with international regulations, particularly strengthening the Financial Intelligence Unit tasked with applicant screenings.
Despite these financial and regulatory hurdles, the performance of the citizenship sector remains robust. Last year, the program generated approximately US$31 million, surpassing projections by 24.3%. Around 2,000 foreign nationals acquired citizenship during this time, indicating continued strong demand from markets such as China, Indonesia, and Russia.
The allure of the Vanuatu passport remains strong, as highlighted by agent Ros Stanford, who noted that clients are attracted by the potential for visa-free travel, tax benefits, and security against global instability. The rising interest among applicants seeking secure alternatives for residency underscores the resilience of Vanuatu’s citizenship programs in an unpredictable geopolitical landscape. Despite the loss of EU visa-free access and scrutiny over citizenship commodification, Vanuatu’s offerings continue to be regarded as one of the quickest paths to citizenship available worldwide, illustrating the complex interplay between economic opportunities and individual aspirations in an ever-evolving world.