Fifty-nine per cent of the applications for Maltese passports under the investment scheme were received from the former Soviet republics, the regulator, Godwin Grima, has reported to Parliament.

He said 30 per cent came from Asia and 9.8 per cent from Gulf countries.

Meanwhile, Home Affairs Minister Carmelo Abela, replying to a parliamentary question by Kristy Debono (PN), said that 459 applications for residence in preparation for citizenship had been received.

In the first annual report by the Office of the Regulator of the Individual Investor Programme, Mr Grima focuses on the regulations governing the scheme, repeatedly pointing out a grey area over the issue of the residency requirement of applicants.

No metrics or guidelines had been provided on the definition of residency, he said.

He also noted the commitment made to the European Commission: the applicants had to provide “genuine links to Malta through the introduction of an effective residence status in Malta prior to the possibility to acquire Maltese naturalisation”.

This, Mr Grima said, left a potential gap in ascertaining “effective residence status”.

“It is important for Identity Malta to provide clear guidelines of what is to be considered as admissible proof of residence in Malta.

“This so that actual or potential applicants will know upfront the onus upon them to prove their residence requirements in Malta.”

In his report, Mr Grima said the regulator should not meddle in policy or operational issues, these being the purview of the government of the day.

On the other hand the regulator would be doing a disservice to itself and the country if it did not carry out the task of “keeping under review” – meaning overseeing and monitoring – the operational component to ensure that it was in line with the legal provisions and to ensure a fair administration of procedure.

His office intended to be a firm authority which, while keeping a low external profile, focused on making a success of this initiative.

Its main interest was that the programme yielded the maximum socio-economic benefit to the Maltese islands without in any way jeopardising any aspect thereof.