On 12 December 2024 , The European Council decided to remove Vanuatu permanently from the list of countries whose citizens are exempt from having a visa when travelling to the EU, due to security concerns with investor citizenship program in Vanuatu. The exemption from the visa requirement for all nationals of Vanuatu is suspended from 4 February 2023 to 3 February 2025. After this decision, the visa requirement imposed is permanently imposed on all Vanuatu passport holder.
The Vanuatu Case
Vanuatu informed the Commission that, based on its case law, it is possible to revoke citizenship where it was obtained fraudulently or illegally, it has not provided information on actual cases in which citizenship acquired through its investor citizenship schemes was revoked.
In March 2023, Vanuatu amended its Citizenship Act by replacing the institutions responsible for screening and carrying out due diligence checks on applications and the procedures therefor. In particular, the previous Internal Screening Committee appointed by the Prime Minister has been replaced by three institutions: the Vanuatu Police Force, the Financial Intelligence Unit and the Vanuatu Immigration Services. Those institutions screen and carry out due diligence checks on applications, including by searching Interpol databases, and report to the Secretary General of the Citizenship Commission.
The EU Argument
The EU claims, Vanuatu has not implemented any structural ex-post monitoring mechanism to address the potential security loopholes of the more than 10 000 passports issued before the amendment of its Citizenship Act and the introduction of the allegedly more robust screening procedure.
Name Change Loophole
Vanuatu informed the Commission that in 2021 the relevant legislation was amended in order to provide that persons holding dual citizenship could not register a name change in Vanuatu. However, Vanuatu also informed the Commission that it does not hold any records of name changes registered prior to 2019. Therefore, it could not provide any
information on the number of persons who acquired citizenship in exchange for an investment and subsequently changed their name or on any follow-up checks on those persons.
EC Final Decision
The EU has decided to cancel the visa exemption, which had already been suspended since 2022, because Vanuatu runs an investor citizenship scheme which has resulted in security and migration risks for the EU.
Vanuatu-EU Talks
The European Commission established a dialogue with Vanuatu to remedy the situation but talks has broken down and Vanuatu has not fixed the issues raised by Commission.
Personal Visit to Collect Passports
The Vanuatu Passport office effective from Oct 1, 2024, made changes to the CBI program imposed personal visit to Vanuatu consulates to collect passports, tightening rules investors.
Vanuatu’s Internal Issues
Vanuatu since then is grappling with internal problems, leaving Vanuatu authorities unable to engage meaningful dialogue diplomatically to reinstate visa waiver with EU authorities. Further talks hit a roadblock, as the country is stung by unstable political and economic fallout (changed 4 governments within a year), reduced tourism, Air Vanuatu liquidation, while still recovering from the aftermath natural disasters from tropical cycles in 2023. In Jan 2, 2024, Vanuatu is hit by 7.4 magnitude earthquake causing widespread damage, leaving Vanuatu one of the most vulnerable countries in the World.
IMF in its report said, Vanuatu CBI Revenues fell 60% below 2024 target. The country uses much needed CBI revenues as a frontline protection against climate change and natural disasters.
