Portuguese watchdog cites Golden Visa as hub for money laundering

A non- governmental watchdog has cited Portugal’s Golden Visa investment programme as an open door for money laundering.

Transparency International’s vice-chair Susana Coroado points out money-laundering by the purchase of upscale real estate isn’t a new phenomenon, but the government’s Golden Visa programme is facilitating it by default as the sources of wealth aren’t being properly scrutinised. The issue was first brought to the light of day some four years ago by Socialist MP Ana Gomes during a tough interview with the BBC, in which she described the programme as a ‘race to the bottom’. Subsequently, Gomes has informed the Organised Crime and Corruption Reporting Project (OCCRP) she is attempting to put together a full list of all expat recipients of Golden Visas, a list which the Portuguese government has refused to make public.

According to Gomes, the scheme is corrupt and is supporting corruption by those taking advantage of it, adding it would be no surprise if some holders of the visa were found to be out-and-out criminals. Transparency International’s recent press release lists irregularities in OCCRP’s investigations in various EU member states, comparing them with certain Golden Visa applications in Portugal. She believes members of Angola’s ruling class may well have been given the visas when they made expensive real estate purchases. Other organisations are calling for an ending to the programme, based on its effect on property prices and its openness to corruption and money laundering.

Later this year, a European Commission report will be published, detailing the impact of Golden Visa schemes across the EU. Transparency International is urging the EU to take note of the Portuguese revelations and make certain extensive oversight is in place before it allows the schemes to continue. Up until now, Portugal’s Golden Visa offer has generated a total of €3.5 billion, the vast majority of which has been the result of property purchase. The EC investigation took in schemes offered by Hungary, Latvia, Austria, Bulgaria, Malta, Lithuania, Cyprus, Armenia and Montenegro as well as Portugal.