Dominica Cracks Down on Fraudulent Citizenship-by-Investment Passports: A Story of 68 Revoked Citizenship-by-Investment (CBI) Passports

Dominica has taken a bold step in tightening the integrity of its Citizenship-by-Investment (CBI) program by canceling 68 passports deemed fraudulent. Among those affected are individuals from Iraq, Iran, Syria, and Pakistan, highlighting the global reach of this Caribbean nation’s CBI scheme and the challenges that come with it.

The Background: A Major Fraud Unveiled

The order to revoke these passports, signed by Citizenship Minister Miriam Blanchard, became public knowledge after it was officially gazetted on June 2, 2024. The minister’s statement made it clear that the actions of these individuals were not “conducive” to being citizens of Dominica. The primary issue? Fraud. The document reveals that these individuals obtained their Dominican citizenship through false representation, fraudulent documents, or by concealing material facts.

These passports were acquired between November 2019 and May 2022, a time when Dominica’s CBI program was in full swing. According to the details, a significant portion—53%—of these revoked passports belonged to Iraqis. Other affected nationalities include Pakistanis (21%), Egyptians and Iranians (6% each), Nigerians and Syrians (4% each), Afghans (3%), as well as one Sudanese and one Jordanian.

The Bigger Picture: Pressure from the European Union

This move by Dominica follows mounting pressure from the European Union (EU), which has increasingly voiced concerns over Caribbean CBI programs. The EU’s apprehensions primarily center around the ease with which foreign nationals can gain citizenship in these countries, particularly through low-cost, high-volume models. During a meeting held on January 22, 2024, EU representatives warned that the privileges currently enjoyed by CBI passport holders, such as visa-free travel to Europe, could be at risk if these programs are not reformed.

In response to this pressure, Dominica, along with Antigua & Barbuda, St. Kitts & Nevis, and Grenada, signed a Memorandum of Understanding (MOU) to strengthen their CBI programs. The agreement includes raising the minimum investment fee for citizenship to $200,000, reflecting their commitment to quality over quantity.

Industry Reactions: A Positive Move Towards Integrity

The decision to revoke these 68 passports has been met with widespread approval within the migration industry. Phillipe May, founder and CEO of Global investment migration firm EC Holdings, praised Dominica’s action, stating that it’s “good that a CBI country is taking action against fraudulent applicants.” He noted that many such applicants fall victim to rogue and unlicensed immigration service providers, who lure them with enticingly low fees, only to mislead them later.

May also highlighted that, in many cases, these individuals may not have knowingly committed fraud but were misled by their service providers. The crackdown serves as a wake-up call for both applicants and service providers to prioritize transparency and integrity in the CBI process.

A Cautionary Tale and a Step Forward

Dominica’s decision to revoke these passports sends a clear message: the days of exploiting loopholes in the CBI program are numbered. As global scrutiny intensifies, countries offering citizenship through investment must balance economic incentives with maintaining the program’s integrity. Dominica’s recent actions are a positive step toward restoring trust and safeguarding the reputation of its CBI program.