Several Caribbean nations operating Citizenship by Investment (CBI) programs are confronting potential suspension of their visa-free access to the European Union’s Schengen Area. The European Commission has initiated formal notification procedures, citing substantial deficiencies in the due diligence and security protocols of these economic citizenship schemes.
The diplomatic tension centers on the perceived risks these programs pose to the EU’s internal security framework. Brussels authorities have expressed particular concern over the adequacy of background checks conducted on applicants prior to granting citizenship. The Commission’s action follows extensive evaluation periods and multiple rounds of consultations with Caribbean governments.
Affected jurisdictions include Dominica, Grenada, and several other Eastern Caribbean states whose programs have attracted thousands of investors primarily seeking enhanced global mobility. The EU’s move represents the most significant regulatory challenge to date for the lucrative citizenship industry, which has generated substantial revenue for small island economies.
Diplomatic sources indicate that Caribbean governments have been granted a limited window to implement corrective measures addressing the identified security vulnerabilities. The proposed suspension mechanism would not immediately revoke visa-free travel but would establish a temporary restriction pending compliance with EU security standards.
The confrontation highlights growing international scrutiny of investor citizenship schemes, with multiple Western governments increasingly concerned about their potential exploitation for money laundering, tax evasion, and circumventing immigration controls. This development may prompt broader reassessment of visa-waiver agreements between the EU and third countries operating similar economic citizenship programs.