Cyprus has taken further action to address the fallout from its once-lucrative “golden visa” programme by revoking 77 passports issued under the scheme.
Among those affected are several prominent figures, including Russian oligarch Alexei Kuzmichev, metals magnate Oleg Deripaska, former FSB investigator Sergey Kovbasyuk, Ukrainian billionaire Ihor Kolomoisky, and fugitive Malaysian financier Jho Low.
This latest development follows a decision by the Cypriot Cabinet earlier this week, as reported by Politis. Officials cited reasons such as false declarations, criminal records, and failure to meet naturalisation requirements for the revocations. The total number of passports withdrawn since the scheme’s inception has now reached 286.
A Controversial Programme
The “golden visa” scheme, introduced in 2013, allowed individuals to gain Cypriot citizenship in exchange for substantial financial investment. The programme generated approximately €7 billion in revenue for the Mediterranean state. It became particularly popular among wealthy Russians and Chinese nationals, many of whom invested in the real estate market.
The popularity of the scheme transformed areas such as Limassol, earning it the nickname “Limassolgrad” due to the influx of Russian property ownership. However, the initiative faced sustained criticism for its perceived lack of due diligence, with allegations that it facilitated money laundering and attracted individuals with dubious backgrounds.
In 2020, under growing international and domestic pressure, the Cypriot government suspended the programme. Reports of abuse and the scheme’s links to politically exposed persons prompted significant scrutiny, particularly from the European Union.
High-Profile Revocations
The latest batch of revoked passports includes several high-profile individuals. Among them, Alexei Kuzmichev, an oligarch linked to Russia’s Alfa Group, and Oleg Deripaska, a metals baron, both of whom are under Western sanctions following Russia’s invasion of Ukraine. Sergey Kovbasyuk, a former investigator for Russia’s Federal Security Service (FSB), is also on the list.
Additionally, Ihor Kolomoisky, a Ukrainian billionaire currently facing charges of fraud and money laundering in Kyiv, and Jho Low, a Malaysian businessman implicated in the 1MDB financial scandal, have lost their Cypriot citizenship.
While these cases highlight the international profile of the scheme’s participants, the Cypriot government has declined to comment on specific decisions, citing confidentiality and personal data protection concerns.
Shifting Tides in Cypriot Policy
For decades, Cyprus cultivated an economy that relied heavily on attracting foreign capital, particularly from Russian investors. This strategy saw the island gain a reputation as a hub for offshore finance and a conduit for illicit money flows.
However, international pressure and geopolitical shifts have led to significant reforms. The Russian invasion of Ukraine in 2022 acted as a catalyst for accelerated scrutiny of financial activities linked to Russian nationals.
Earlier this year, the United States and Cyprus announced enhanced cooperation to combat illicit financial operations. With the support of the U.S. Department of Justice and the FBI, Cypriot authorities are working to bolster their capacity to identify and prosecute financial crimes.
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