Lalit Modi’s acquisition of Vanuatu citizenship has brought attention to the nation’s ‘golden passport’ scheme, enabling citizenship through investment. This program supports Vanuatu’s economy but raises concerns over security and regulation, particularly regarding criminal exploitation. Amid increasing applications, particularly from legal issues in India, the scheme highlights both opportunities and significant challenges.
Vanuatu has gained international attention as former Indian Premier League chairman Lalit Modi has reportedly secured its citizenship amid ongoing legal issues in India. The Indian Ministry of External Affairs has acknowledged that Modi is in the process of surrendering his Indian passport while legal actions against him are still in progress. He faces allegations of financial misconduct, including serious offenses such as money laundering and bid-rigging, prompting his departure from India in 2010.
Vanuatu’s Citizenship by Investment (CBI) program, often referred to as the ‘golden passport’ scheme, enables individuals to acquire citizenship through a financial investment of USD 150,000. This program is known for its rapid processing—citizenship is typically granted within one month without the requirement of residence in the country. As of 2025, holders of a Vanuatu passport can travel visa-free to 113 countries.
The CBI program plays a vital role in Vanuatu’s economy, as it generates nearly 40% of the country’s national revenue, which is crucial for a nation with a per capita GDP of only USD 3,515.2 as of 2023. The surge in passport applications during the COVID-19 pandemic resulted in a budget surplus for Vanuatu in 2021, highlighting the scheme’s economic significance. In addition, Vanuatu is attractive for its tax-friendly environment, imposing no personal income, corporate, wealth, or inheritance taxes, appealing to foreign investors.
Interest in Vanuatu citizenship is increasing among Indians and NRIs, with over 30 Indians obtaining Vanuatu passports in the past two years. The program is enticing for those seeking to navigate potential legal hurdles in India and offers family inclusion in citizenship applications. Furthermore, some applicants view Vanuatu as an initial step to obtaining citizenship in countries with more powerful passports like Malta or Cyprus.
Despite its advantages, Vanuatu’s citizenship program has faced criticism for security reasons, with reports of misuse by criminal organizations. The pathway to the UK and EU through the CBI scheme raised alarm bells for authorities, leading to the EU’s revocation of Vanuatu’s visa-free access due to these security concerns. Furthermore, criticisms persist regarding inadequate background checks to prevent exploitation, necessitating a reassessment of regulatory measures surrounding the golden passport scheme.
Overall, while Vanuatu’s citizenship scheme offers swift and lucrative opportunities, especially for international applicants facing legal challenges, it simultaneously raises significant security and regulatory concerns that merit careful consideration.
Vanuatu’s CBI program remains a popular option for individuals seeking expedited citizenship, especially among those facing legal challenges, such as Lalit Modi. The financial contributions required for citizenship significantly bolster the nation’s economy, despite the risks associated with insufficient regulatory oversight and security concerns. As the nation navigates these complexities, the golden passport scheme’s viability and reputation hang in the balance, making future evaluations necessary.
Original Source: english.mathrubhumi.com
