IM Yearbook 2020/21

EU member states. It is in the national
interest of every member state to
protect its sovereignty, a principle
that is also enshrined in EU law.
The original programme was a highly
responsible one, where applicants undergo
stringent due diligence. Over the years,
a total of 368 applications for citizenship
were refused, and a further 35 were not
allowed to apply for citizenship following
initial KYC checks conducted through
local police authorities. In addition, 95
applications were withdrawn by the
applicants, most of which were following
questions raised by the Agency during
the due diligence process. The rejection
rate has varied throughout the years.
In 2020, the Minister has refused more
than 30% of the applications following
due diligence conducted by MIIPA. The
Agency has also spontaneously reported
numerous cases to Malta’s Financial
Intelligence Analysis Unit (FIAU) when it
identified suspicion of money laundering.
To top it off, EU member states
grant more than 600,000 citizenships
a year, of which only up to 1,000 are by
investment. In other words, this branch
of naturalisation represents a very small
percentage of the total new EU citizenry per
year, and those are thoroughly screened.
What can you tell us about the MIIP’s
role in cushioning the economic
impact of the covid-19 crisis in
Malta? What economic impact
do you envision the programme
will have in the coming years?
By welcoming just under 200 new families
a year, we have generated a total €1.5 billion
in seven years. The funds have been a
tremendous boost to the Maltese economy,
building Malta’s ‘war chest’ in these
times of global pandemic, and will prove
to be even more useful as the economy
recovers from the hit. The new regulations
will continue generating revenue for
areas of economic need in the future.
Although this is a new initiative which
is completely distinct, the benefits of
Malta’s policy for attracting international
investment are noticeable across the
country, especially through the €600
million allocated to the National
Development & Social Fund (NDSF) for
social and economic development of the
Maltese Islands. In this way, the Maltese
Islands have sought to strike a rational
balance, between opening their doors
for people who have distinct attributes
in their field and maintaining exclusivity
when it comes to the new Maltese.
In October 2020, the European
Commission opened infringement
procedures against Malta over
its citizenship-by-investment
programme. What comments would
you like to make about this issue?
The Government of Malta had already
announced that the Malta Individual
Investor Programme will be coming to an
end. We have taken note of the concerns
raised by the European Commission
and by the expert group established by
the Commission on citizenship- and
residence-by-investment legislations
found in most European member states.
Subsequently, Malta will be implementing
new residence regulations, which may
lead to citizenship and which take into
consideration the European Commission’s
concerns and recommendations.
The Government reiterates that
citizenship is a member state competence,
whereby every European country decides
on its own who are the individuals which
it believes should receive citizenship.
There are over 600,000 individuals
who become European citizens each
year with very minimal screening.
Malta is implementing regulations
which go way beyond what many
other European member states do to
scrutinise citizenship applicants.
The Government will formally reply
to the letter of formal notice in due course.
It is the intention of the Government to
use all possible legal measures to defend
the national interest and sovereignty.
We believe
in a spirit of
dialogue,
and we have paid
special attention to
the criticism that the
original programme
received and
availed ourselves of
constructive opinions.
Alex Muscat is Malta’s
BIO Parliamentary Secretary
for Citizenship and
Communities within the Ministry
for Home Affairs, National
Security & Law Enforcement.
An economist by profession,
Alex has extensive political
experience. He has played a
central role in government for
the past seven years within the
Private Secretariat team of the
Prime Minister, where he rose to
the position of Deputy Head.
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