The United Kingdom is set to scrap its golden visa scheme for investors that fast-tracks residency for wealthy investors in the UK over money-laundering concerns, the BBC reported on Thursday.
A source from within the UK government reportedly confirmed reports of an announcement that is set to take place next week on Tier 1 investor visas which offer golden visa residency to those spending at least $2.7 million (GBP 2 million) in investments.
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The Tier 1 visa, also known as the investor visa or the golden visa, offers investors and their families residency. Tier 1 visa holders have been permitted to apply for permanent residence in the UK, but the speed of this differs depending on how much they invest.
Holders of these visas can apply for permanent residency within five years, but this can be shortened to three years if around $6.8 million (GBP 5 million) is invested or two years if they invest around $13.6 million (GBP 10 million).
First introduced in 2008, the scheme aimed to encourage wealthy people from outside the European Union member state countries to invest in the country, according to the BBC.
After concerns about it being open to abuse and corruption, the BBC reported that it has been under review for some time.
A spokesperson from the UK Home Office told the BBC that it would report “in due course” on an ongoing review of Tier 1 visas granted before changes were made to the scheme in 2015.
The expected announcement comes at a time of immense pressure on UK ministers to cut the country’s ties to Russia amid the impending threat of a Russian-led Ukraine invasion.
Russia has so far gathered more than 100,000 troops along the Ukrainian border but denies that it is planning to invade the country.
The country has reportedly issued over 14,000 investor visas to Russian citizens since 2008. Since the scheme was reformed in 2015, some changes were introduced to the approval system including extra checks on how and when applicants earned their wealth.
In addition, banks are now required to complete specific checks and investigations before opening new accounts for applicants, according to the BBC report. Applicants are also required to submit extra documentation if their qualifying funds are being invested through a chain of companies.
As part of a report on Russian influence in the UK, the Parliament’s intelligence and security committee in 2020 argued for a more thorough and “robust” approach to Tier 1 visa approvals.
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