Eastern Caribbean countries operating Citizenship by Investment (CBI) programmes could face increased scrutiny from the European Union, as concerns linger about threats such schemes pose to the security of the Schengen area.

Under the EU’s revised Visa Suspension Mechanism, the operation of investor citizenship programmes by visa-free countries is now, in itself, considered a potential ground for suspending visa-free travel. 

The mechanism allows the EU to revoke visa-free access where programmes are seen as enabling third-country nationals to bypass standard security checks.

Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis, and Saint Lucia have operated CBI schemes for years. 

In some cases, people with questionable backgrounds were able to secure secure their passports which are among the top 35 strongest passports in the world.

EU assessments estimate that approximately 107,000 passports have been issued through these programmes. 

Application volumes remain high, with more than 13,000 applications in 2023 and over 10,500 in 2024.

The EU has raised particular concern over short processing times and low rejection rates, which it says may point to weaknesses in due diligence. 

In 2024, rejection rates stood at 1.7 per cent in Antigua and Barbuda, 5.3 per cent in Saint Lucia, and 6.5 per cent in Dominica.

European officials have warned that investor citizenship schemes can present serious risks related to illegal migration, organised crime, security threats and tax evasion, especially where there is no genuine link between applicants and the granting state or where identity changes are permitted during the process.

In response to EU pressure, the five Eastern Caribbean countries have taken steps to reform their programmes, including harmonising the minimum investment threshold at US$200,000, strengthening security screening and improving information-sharing and transparency. 

However, EU assessments say these measures have not fully addressed concerns.

The Caribbean may be able to look to Georgia, a country located in the Caucus Region, as an example of how visa-free access can be placed at risk. 

While Georgia’s citizenship practices involve far fewer cases, the EU has flagged its simplified naturalisation procedures as potentially open to abuse, particularly by Russian nationals. Combined with broader concerns over governance and fundamental rights, Georgia’s visa-free status is now under active review, with EU authorities indicating that suspension measures should be considered.

European law requires countries seeking to maintain or obtain visa-free access to abolish investor citizenship schemes altogether. 

While this requirement has been clearly communicated to EU candidate states, the continued operation of large-scale programmes in the Eastern Caribbean remains a “persistent and serious security concern” under the revised framework.

The EU has indicated it will continue to monitor citizenship practices closely and could move to suspend visa-free travel if countries are found to be non-compliant. For Caribbean CBI states, visa free access to the EU is a major selling point of their passports.