Through the economic citizenship program, Montenegro can stimulate economic growth, but it must take care to attract clients with a good reputation and to perform their due diligence beforehand, which is of crucial importance for acquiring citizenship through investment.
This was highlighted yesterday at a workshop dedicated to a special investment program (economic citizenship) that Montenegro is preparing. The event was organized by the Council for Migration Investments (SMU) from Geneva and the Chamber of Commerce of Montenegro.
The Minister of Sustainable Development and Tourism, Pavle Radulović, said that the second tender for the development of the economic citizenship program was recently completed, for which six bids were received, and that the Government will make the entire process public in order to arrive at the best model.
"The government will look at the offers, consult partners from the European Commission and all other relevant factors and explain in detail the method of investment in Montenegro," said Radulović.
He emphasized that no political games are hidden behind this process, and that the goal is to create new jobs.
Chief Executive Officer of SMU Bruno Lecuyer emphasized that the economic citizenship program is the root of economic growth in the country and that Montenegro is an attractive destination, especially after joining the NATO alliance.
Thomson Reuters head of financial crime, James Swenson, stressed that any individual applying for citizenship must be thoroughly vetted and must be a reputable person willing to sign a document that includes due diligence.
"There are several important elements that a due diligence must contain. First, is it on the list of international sanctions or some other list, like the list of terrorists. Secondly, it is necessary to determine the level of political exposure of that individual, that is, whether he can influence the Government. Due diligence involves recognizing the identification of the source of wealth, i.e. whether the personality profile is aligned with that wealth. The program should recognize undeclared sources of wealth, that is, whether someone is hiding that he is connected to a company," explained Svenson.
He added that it is necessary to check international news about an individual seeking citizenship, but also local news from the country he comes from. In addition, check whether he has participated in any litigation.
"It's all a complicated process that involves a lot of challenges," Svenson emphasized.
He pointed out that it is particularly difficult to check people coming from the Middle East, and that their check means going to the country they come from.
The first call for the development of the economic citizenship program did not succeed and at the beginning of April the Ministry rejected the offers of two consortia. The offer was submitted by a consortium consisting of the British companies Henley and partners Government Services and Fragomen LLP, as well as the Chinese Shanghai Overseas Chinese Exit-Entry Services. The second applicant was the Canadian-American consortium Arton-Ipsa.
Someone wants to avoid sanctions or the law in the country they come from
Peter Vincent, General Counsel of Thomson Reuters Special Services in Washington, explained that checks on individuals are very important, especially if someone wants to avoid sanctions or the law in the country they come from. He added that there have been initiatives to shut down citizenship programs around the world.
"I understand the Government of Montenegro for this program. It is necessary to engage the private sector with experience that worked on those programs. Cooperation with Interpol, Europol and other organizations is needed," explained Vincent.
In recent years, Montenegrin passports were distributed, even to controversial people, suspected of criminal acts in their countries, at the suggestion of former Prime Ministers Milo Đukanović and Igor Lukšić, President Filip Vujanović and former President of the Assembly Ranko Krivokapić.
Among the "famous Montenegrins" are the former Palestinian minister Muhamed Dahlan, whom the Palestinian authorities suspect of embezzling hundreds of millions from state funds, and the former Prime Minister of Thailand, Thaksin Shinawatra, who was convicted of corruption in that country...
Pizzarotti interested in Skadar Lake
The representative of the Italian construction company Pizzarotti Giuseppe Maretti said that they are interested in participating in the construction of the Porto Skadar Lake complex, which would be financed with money obtained through the economic citizenship program.
"It is a good project that would represent something completely new in the area of Lake Skadar. If it is not financed with money from economic citizenship, it will hardly be feasible," Mareti assessed. His company participates in the construction of the Portonovi complex, where they employ 120 workers. The chief operating officer of Henley and partners Jirg Štefan said that Montenegro is a good market for issuing passports, and that one of the most important reasons why someone takes citizenship is to be able to travel without a visa.
"The best is the German passport, which allows entry into 176 countries," said Štefan.
Bonus video:
