Malta is once again facing scrutiny over its citizenship-by-investment scheme, after an international economic organisation raised concerns the scheme could allow people to hide their financial assets.
An analysis of 100 countries’ “golden visas” scheme by the Organisation for Economic Co-operation and Development (OECD) found Malta could potentially offer a back-door to money-launderers and tax evaders. Specifically, the country had a “high risk” of allowing people to circumvent the common reporting standard for the automatic exchange of tax and financial information on a global level.
People can hide their assets by escaping reporting on their assets, in line with common standards, the organisation’s report, published Tuesday, said.
Particularly, documentation obtained through the golden passports’ scheme can be misused to misrepresent an individual’s jurisdiction of tax residence, the analysis found.
Malta’s financial institutions are required to take the outcome of the report into account when performing their due diligence obligations, the OECD said.
Most individuals seeking to circumvent the common reporting standard will wish to avoid income tax on their offshore…
