Key Takeaways: The United States has imposed new travel restrictions on citizens of Antigua and Barbuda, and Dominica, specifically targeting individuals who obtained citizenship through investment (CBI) programs. The move, enacted by President Trump, aims to close security loopholes that allow individuals from restricted countries to bypass US travel bans. Officials warn these 'golden passport' programs enable identity concealment and evasion of financial restrictions.
A new US presidential proclamation has thrown a spotlight on the security risks associated with Citizenship by Investment (CBI) programs, commonly known as 'golden passport' schemes. The order, reinstated by President Donald Trump on December 16, specifically names the Caribbean nations of Dominica, Antigua and Barbuda for their CBI programs, which the US deems to have "relaxed residency and screening requirements."
The core concern is straightforward: a person from a country under US travel restrictions could purchase citizenship from a second, non-restricted country, obtain its passport, and then apply for a US visa, effectively circumventing the original ban.
"United States law enforcement and the Department of State have found that, historically, CBI programs have been susceptible to several risks," the proclamation states. "These risks include allowing an individual to conceal his or her identity and assets."
Why These Programs Are Under Scrutiny
The targeted Caribbean CBI programs are attractive for their low physical presence requirements and significant travel perks. For instance, Antigua and Barbuda's program requires only five days of physical presence within the first five years after citizenship is granted.
Holders of these passports gain visa-free or visa-on-arrival access to over 140 countries, including the entire Schengen Area in Europe. This global mobility, combined with attractive tax regimes (no income, capital gains, or inheritance tax), has made them popular among wealthy individuals worldwide, including Americans seeking a 'plan B' residency.
However, this very accessibility is now seen as a vulnerability. Investigations, such as a 2023 report by the Organized Crime and Corruption Reporting Project (OCCRP), found that individuals linked to war crimes from Russia and Iran had obtained Dominican citizenship, highlighting due diligence failures.
The Fallout and Official Responses
The new US policy has prompted strong reactions from the affected nations and industry stakeholders.
- Dominica's Prime Minister, Roosevelt Skerrit, emphasized recent legislative reforms to enhance background checks and transparency, stating his country's commitment to "cooperation, transparency and shared security objectives" with the US.
- Industry defense: Mo Bennis of Arton Capital expressed surprise at Antigua's inclusion, arguing the country has "continuously increased its due diligence and applicant vetting to a very rigorous level." He suggested the ban reflects evolving US border policy rather than a specific failure of Antiguan standards.
Bennis also pointed out the apparent contradiction, noting that similar golden visa and residency programs exist in both the United States and Europe.
Implications for Travel and Residency Planning
For travelers and expats, this development underscores a growing global crackdown on investment migration. While CBI programs remain legal in many jurisdictions, increased scrutiny from major powers like the US and the EU is raising the stakes.
Potential applicants must now consider:
- Enhanced due diligence: Countries with CBI programs will likely face pressure to implement even stricter vetting processes.
- Passport validity: The travel privileges of a second passport are not guaranteed and can be revoked or restricted by other nations based on security assessments.
- Policy volatility: Residency and citizenship obtained through investment are subject to changing international relations and security policies.
The US action signals that the era of lightly-vetted 'golden passports' may be closing, as nations prioritize border security over the revenue these programs generate.