Mossack Fonseca actively pitched the government’s cash-for-passports scheme as being one of the easiest to satisfy with “lax” residency requirements, leaked e-mails from the Panama Papers show.
In one e-mail, the Panama firm pointed out to one prospective client that the residency requirements were far from stringent. “While the requirement for residency is not linked to a specific number of days [underscored as per original e-mail], some presence in Malta is required,” it said.
The prospective client was also informed that, apart from “some physical presence” in Malta, it would also be advisable to make donations to “NGOs/charities/ religious groups” to ensure a relationship was built with the local community.
The cash-for-passports scheme requires a “contribution” of €650,000, the purchase of €150,000 worth of government bonds and a €350,000 property purchase or €16,000 yearly property rental. Prime Minister Joseph Muscat has long denied that the scheme is a simple sale of Maltese passports.
“Malta wants your talent, not your money. Your networks, not your accounts. This is because we are about the future, not the past.
“Those who apply, endure the tight due diligence and scrutiny, and get selected to join the exclusive and limited pool of Maltese citizens, will be part of our future,” Dr Muscat told a Henley & Partners seminar on citizenship in New York.
The government had to amend the scheme when it was first introduced. One of the amendments insisted upon by the European Commission was proof of “effective residence” over a 12-month period in order for the applicant to have a “genuine link” with Malta.
By the way, do you have any high net worth clients (millionaires!) interested in acquiring a passport from Malta?
Another e-mail exchange between Mossack Fonseca Malta and a foreign client spoke of the ease of buying a Maltese passport.
The e-mail said that, compared to other EU jurisdictions, the processing time for the scheme was three to four months faster.
A passport could be issued after 12 months, Mossack Fonseca informed the client.
Mossack Fonseca Malta, which was associated with local accounting firm Nexia BT, also appeared to market the cash-for-passports scheme to a client whose due diligence report wrongly flagged the possibility he could have been involved in securities fraud in 1999.
The due diligence report was carried out by Mossack Fonseca as the Spanish client was looking to open a company in Malta. The client denied any wrongdoing when questioned by Mossack Fonseca about the report and a search using a different due diligence platform turned up no results.
In an internal e-mail exchange between Mossack Fonseca Malta and Nexia BT, a Mossack Fonseca employee said he would take advantage of the opportunity to introduce the IIP scheme seeing that the Spanish client said he would attract Russian and Chinese investors to his company in Malta.
Another e-mail exchange between Mossack Fonseca Malta and Panama saw an employee with the local company casually asking if they knew of any millionaires who would be interested in applying for Maltese citizenship.
“By the way, do you have any high net worth clients (millionaires!) interested in acquiring a passport from Malta? Like those Russians clients from a few years back, remember? Referral commissions are high, up to €30,000 per request,” the e-mail said.
The Panama Papers were made available to the Times of Malta through an investigative partnership with the International Consortium of Investigative Journalists and German newspaper Suddeutsche Zeitung.
jacob.borg@timesofmalta.com
