Cyprus Revokes Ten More Citizenships Amid Ongoing Probe

On August 21, the Cypriot government announced plans to revoke the citizenship of 10 more individuals who obtained their passports through the now-discontinued Citizenship by Investment Program (CIP).

Government Spokesperson Niovis Parisinou revealed that the decision follows an investigation by the Ministry of Interior into three investors and seven dependents.

While the identities of those affected remain undisclosed, this move brings the total number of citizenship revocations since October 2021 to 219, including 60 investors and 159 dependents.

Cyprus’ CIP, introduced in the wake of the European Debt Crisis to bolster the country’s struggling economy, offered citizenship in exchange for investments of up to 2.5 million euros. The program proved particularly attractive to Russian and Chinese nationals seeking EU passports.

The program’s reputation, however, was tarnished in 2020 following Al Jazeera’s “Cyprus Papers” expose. This investigation exposed instances of passports being granted to internationally sanctioned individuals and convicted criminals. This revelation led to the program’s termination and sparked a comprehensive review of past approvals.

A 2021 probe into the CIP uncovered alarming irregularities. The investigation revealed that authorities had issued 51% of the 6,779 citizenships granted between 2007 and 2020 to unqualified applicants.

Investigators discovered various forms of abuse, including conflicts of interest, influence peddling, and fraudulent property agreements that artificially inflated investment amounts.

“There were mistakes; it was a mistake not to have criteria, for instance, for high-risk persons,” Interior Minister Constantinos Petrides acknowledged in a previous statement, highlighting the program’s initial lack of stringent vetting procedures.

In May 2024, the government announced a further probe into approximately 100 cases of “problematic” citizenship investors. The investigation targets individuals wanted for crimes such as fraud and those who failed to make the required investments or only pretended to have done so.

Recent high-profile cases include the July 2024 revocation of citizenship for two Russian oligarchs, Konstantin Grigorishin and Igor Kesav. Both obtained their passports during Demetris Christofias’s presidency from 2008 to 2013.

Another notable case involves Malaysian businessman Jho Low, whom Cypriot authorities stripped of citizenship in June 2024 due to his connection with the 1MDB scandal.

The government has emphasized its commitment to transparency and accountability as Cyprus continues its review process. “It goes without saying that in the case any disciplinary or criminal offenses by any person are found during the new probe, the indicated procedures shall be followed,” Petrides warned, hinting at potential consequences for officials or service providers found to have facilitated improper approvals.

Adding to the complexity of Cyprus’ efforts to address the CIP’s aftermath, the Plenary of the Administrative Court of Cyprus recently issued a groundbreaking decision. On July 10, 2024, the court ruled that investors whose citizenship applications were rejected under the CIP could seek judicial review.

This decision dismisses the government’s argument that such acts were beyond judicial oversight and opens the door for hundreds of rejected applicants to challenge the government’s decisions.