The UK is suspending its investor visas for the rich, closing a route to permanent residence and British citizenship that's popular with Russian oligarchs and wealthy Chinese.
The program will be suspended from midnight on Friday ahead of reforms designed to tackle money laundering and organised crime, according to a Home Office statement. They require applicants to provide audits of their financial and business interests and exclude government bonds as a qualifying investment. The suspension will lift once the changes, due in 2019, have been put in place.
Billionaire Roman Abramovich was one of many Russian oligarchs to be kicked out of the UK.Credit:AP
The number of applicants fell sharply in 2015 after the government introduced new anti-money laundering due diligence checks and doubled the minimum investment for the permit to £2 million pounds ($3.5 million).
The visa is open to those from outside the European Economic Area and Switzerland. Chinese investors have increasingly turned to the visas in recent years, making up almost 50 per cent of applicants in the third quarter, according to data compiled by financial services firm Shard Capital Partners LLP.
Government-backed immigration programs aren't uncommon in other parts of the world. The US has an immigration program, known as the EB-5 visa, that lets immigrants who create jobs in the country stay permanently. Portugal has a so-called golden visa program that allows foreign individuals to buy property valued at 500,000 euros ($788,000) or more in return for residency.
The UK's move could hamper people worldwide, but Russian oligarchs may be most affected by the changes. The UK has long been a particularly appealing jurisdiction for ultra-rich Russians as a safe and stable place to do business, hold their wealth and educate their children, so much so that the city has been nicknamed Londongrad. But the suspension is the latest sign that such appeal may be fading after the government crackdown in the wake of the poisoning on British soil.
"We will not tolerate people who do not play by the rules and seek to abuse the system," Immigration Minister Caroline Nokes said in the statement. The new measures "will make sure that only genuine investors, who intend to support U.K. businesses, can benefit from our immigration system."
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