Vanuatu’s Citizenship Sales Thrive Amid Financial Challenges

Vanuatu’s citizenship-by-investment programme continues to flourish despite significant challenges, including currency issues and integrity concerns. While many anticipated a decline following the European Union’s decision in 2024 to revoke visa-free access over the nation’s “golden passport” scheme, demand for Vanuatu citizenship remains strong. This programme has emerged as the largest source of revenue for the Vanuatu government, with passport holders still able to access certain European markets.

Designated agents for Vanuatu’s citizenship programmes, such as Francesca Grillon from Yawha & Associates, report that the loss of visa-free entry has not severely impacted their business. “Our product offers other benefits, and applicants can still explore options to enter Europe,” Grillon stated. Despite this, the country’s ongoing inclusion on the EU’s anti-money laundering blacklist has posed more substantial challenges, particularly in receiving foreign currency.

Grillon highlighted that the Commonwealth Bank of Australia, which previously acted as the correspondent bank for the National Bank of Vanuatu, halted transfers for certified citizenship agents last September. “The National Bank is currently seeking a correspondent bank that can accept US dollars. Currently, only Japanese yen is being accepted,” Grillon explained, indicating that this restriction has created costly complications for both agents and applicants.

Integrity issues surrounding the citizenship programme have prompted a government-led Commission of Inquiry, initiated in 2024, to investigate allegations of corrupt practices. However, the report has yet to be made public, leading to criticism from local leaders such as Jenny Ligo, chairperson of Women Against Crime and Corruption in Vanuatu. “Political interests have misled the citizenship schemes. We need neutral people to manage these programmes,” Ligo remarked, emphasizing the lack of trust in the current system.

The Vanuatu government faces multiple challenges, including natural disasters and political reform, but enhancing the integrity of its citizenship-by-investment scheme remains a priority. Grillon noted that the government is actively working to improve compliance with international regulations, including strengthening the Financial Intelligence Unit responsible for screening applicants.

Despite these challenges, the citizenship sector has shown resilience. According to the Vanuatu Daily Post, receipts from citizenship sales accounted for a significant portion of the US$31 million in government revenue last year, exceeding forecasts by 24.3 percent. Approximately 2,000 foreigners were granted citizenship during this period, with interest remaining robust across various markets.

Norman Joseph from JG Marketing, Consulting and Recruitment Agency reported a diverse clientele, including individuals from China, Indonesia, and Russia. “Many of our clients hold multiple passports, which allows them to apply through different nationalities,” Joseph noted.

The appeal of Vanuatu’s citizenship extends beyond the ability to travel without a visa. Ros Stanford from Stanford Knight highlighted the growing demand for a “Plan B” residence amid global uncertainties. “Clients are seeking safe alternatives as geopolitical tensions rise,” Stanford explained.

Even without visa-free access to Europe and amid local concerns regarding the commodification of citizenship, Vanuatu’s passport remains highly sought after. Agents describe the process as one of the fastest pathways to citizenship available worldwide, underlining the sector’s enduring allure despite its current challenges.