Investor Citizenship and Residence Schemes; safe data flows with Japan and Brexit preparedness
Commission reports on the risks of investor citizenship and residence schemes in the EU and outlines steps to address them
Investor citizenship and residence schemes
For the first time, the Commission has presented a comprehensive report on investor citizenship and residence schemes operated by a number of EU Member States. The report maps the existing practices and identifies certain risks such schemes imply for the EU, in particular, as regards security, money laundering, tax evasion and corruption. A lack of transparency in how the schemes are operated and a lack of cooperation among Member States further exacerbate these risks, the report finds.
The Commission will monitor wider issues of compliance with EU law raised by investor citizenship and residence schemes and it will take necessary action as appropriate. For this reason, Member States need to ensure, in particular, that:
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-All obligatory border and security checks are systematically carried out;
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-The requirements of the Long-Term Residence Permit Directive and the Family Reunification Directive are properly complied with;
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-Funds paid by investor citizenship and residence applicants are assessed according to the EU anti-money laundering rules;
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-In the context of tax avoidance risks, there are tools available in the EU framework for administrative cooperation, in particular for exchange of information.
The Commission will monitor steps taken by Member States to address issues of transparency and governance in managing these schemes. It will establish a group of experts from Member States to improve the transparency, governance and the security of the schemes. That group will be tasked, in particular, with:
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-Setting up a system of exchange of information and consultation on the numbers of applications received, countries of origin and on the number of citizenships and residence permits granted/rejected by Member States to individuals based on investments;
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-Developing a common set of security checks for investor citizenship schemes, including specific risk management processes, by the end of 2019.
Finally, concerning third countries setting up similar schemes, which may have security implications for the EU, the Commission will monitor investor citizenship schemes in candidate countries and potential candidates as part of the EU accession process. It will also monitor the impact of such schemes by EU visa-free countries as part of the visa-suspension mechanism.
Adequacy decision on Japan
The Commission has adopted today its adequacy decision on Japan, allowing personal data to flow freely between the two economies on the basis of strong protection guarantees.
This is the last step in the procedure launched in September 2018, which included the opinion of the European Data Protection Board and the agreement from a committee composed of representatives of the EU Member States. Together with the equivalent decision adopted today by Japan, it will start applying as of today.
The key elements of the adequacy decision, which complements the EU-Japan Economic Partnership Agreement, include a set of rules that will bridge several differences between the two data protection systems, assurances regarding safeguards concerning the access of Japanese public authorities for criminal law enforcement and national security purposes, and a complaint-handling mechanism for complaints from Europeans regarding access to their data by Japanese public authorities.
Brexit preparedness
Given the continued uncertainty in the UK surrounding the ratification of the Withdrawal Agreement, the Commission has today adopted two legislative proposals to help mitigate the significant impact that a “no-deal” Brexit would have on EU fisheries.
This is part of the Commission's ongoing preparedness and contingency work and will help ensure a coordinated EU-wide approach in such a scenario.
The first proposal is to allow fishermen and operators from EU Members States to receive compensation under the European Maritime and Fisheries Fund for the temporary cessation of fishing activities. This will help off-set some of the impact of a sudden closure of UK waters to EU fishing vessels in a no-deal scenario.
The second proposal amends the Regulation on the Sustainable Management of the External Fleets. The aim of this proposal is to ensure that the EU is in a position to grant UK vessels access to EU waters until the end of 2019, on the condition that EU vessels are also granted reciprocal access to UK waters. The proposal also provides for a simplified procedure to authorise UK vessels to fish in EU waters and EU vessels to fish in UK waters - should the UK grant that access. This proposal is limited to 2019 and is based on the agreement in the Agriculture and Fisheries Council of 17 and 18 December 2018 on the fishing opportunities for 2019.
Senior Management appointments
The European Commission has today decided to appoint Mr Christian Roques to the position of Director for “Health and Wellbeing - Working Conditions” in its department for Human Resources and Security; Mr Michael Shotter to the position of Director for “Migration and Protection” in its Directorate-General for Migration and Home Affairs; and Ms Agnieszka Kazmierczak, as the New Head of the EU's Euratom Supply Agency.
Related links
Commission report on investor citizenship and residence schemes in the EU
The adequacy decision and related documents
Factsheet on the EU-Japan Adequacy Decision
Press release on launch of the adoption procedure (5 September 2018)
Press release on the conclusions of the adequacy talks (17 July 2018)