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OECD updates guidance on residence by investment schemes

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Following discussions with Panama, the OECD has updated its guidance for financial institutions on residence/citizenship by investment schemes. These schemes allow foreign individuals to obtain either citizenship, or temporary or permanent residence rights, in return for local investments or against a flat fee. The OECD is concerned at the growing use of such schemes, which it believes are being used to circumvent the CRS.

Panama has undertaken to ensure that residence documentation is clearly identified with the programme under which it is issued for three high-risk schemes: reforestation investor permit; economic solvency permit; and friendly nations permit.

The guidance now states that where residence documentation clearly identifies the programme under which it was issued, only such specific documentation should be treated as high-risk for CRS due diligence purposes. This means residency documentation issued by Panama in other cases should not automatically be regarded as potentially high-risk.


Issue: 1423
Categories: News