MALTA: One in four applicants for Maltese citizenship refused

Almost one in four applicants for Malta’s golden passport scheme are refused, official data seen by the Times of Malta shows.

Around half the refused applications came from Russian nationals while the rest were from Chinese, Libyans, Indians, Ukrainians and Americans, among other nationalities.

Details on reasons behind the refusals are not divulged, with government sources saying it was a matter of national security but applications are only refused when the applicant or anyone of his dependents fail the rigorous due diligence tests.

The Times of Malta reported yesterday that a Russian millionaire who failed the due diligence test and who had his application refused took the matter to court in a bid to have the decision reversed.

Yury Sergeevich Danilov, 41, who resides in Moscow, complained in court that the government’s outright refusal to grant him Maltese citizenship without giving him the opportunity to address any issues with his application was in breach of the principle of natural justice. He applied for Maltese citizenship through an approved agent, Nexia BT Inter­national Ltd.

He claimed that he had submitted all the necessary documentation along with his application for citizenship, including a statement declaring where his funds were being sourced.

This statement showed that he was employed with Bombardier Transportation (Signal) Limited and held the position of deputy head of the Russia region, CIS, Baltics and Mongolia.

Basically, we flag anything dodgy
Mr Danilov said the statement showed that he was personally worth almost €2.7 million. He said he had paid the €17,500 in fees, €10,000 in deposits and committed himself to paying a further €700,000 in contributions.

Moreover, he had signed a lease agreement for a Mellieħa maisonette and moved here with his wife and daughter.

Sources said details on Mr Danilov’s application would emerge in court. He is the first person to sue the government for not granting him citizenship.

Sources close to Identity Malta, which processes IIP applications, said the due diligence test analyses the applicants’ past activities, the source of wealth and anything that could be reputational risk for the country.

“Basically, we flag anything dodgy,” the source noted.

Rolled out in 2013, the IIP allows wealthy individuals to a buy a Maltese passport against a payment of €650,000, a property investment of €350,000 and an additional contribution of €150,000 towards government bonds.

The programme drew huge criticism amid concerns that its beneficiaries, whose names are published alongside all naturalised Maltese persons, could be shady individuals with no genuine link to the island. Subsequently, the government was forced by the EU to introduce a residence clause.

20 March 2025

US: SEC drops case against crypto firm with ties to Trump, CEO says

The Securities and Exchange Commission has ended its yearslong case and appeal against a cryptocurrency firm whose CEO has ties to the White House, the CEO said Wednesday. Brad Garlinghouse, the CEO

Read More
3 January 2025

ASIA: China Tightens Grip: New Regulations to Curb Risky Crypto Trades Among Banks

China’s stance on cryptocurrency has shifted significantly over the years, with the nation now hosting some of the world’s harshest regulations.Things are set to become even tougher for China-based

Read More
19 December 2024

The STEP Diploma

The STEP Diploma is the benchmark qualification for those working in the field of trusts and/or estates. It is designed and delivered by practitioners, for practitioners, and is recognised and respected

Read More
20 January 2024

FINTECH: Crypto industry bats for tax reductions, regulatory tightening of offshore exchanges

Letters sent out to the finance ministry last month by Bharat Web3 Association and CoinDCX highlighted concerns over the 30 percent VDA tax burdening small Web3 and crypto businesses and the need for

Read More