An IMGW News Report
Washington singles out citizenship-selling states as security risks. With Brussels sharpening its stance, small nations brace for economic fallout.
The Trump administration is preparing to expand its travel ban to 36 additional countries, many of which operate Citizenship or Residence by Investment (CBI/RBI) programmes – legal pathways that grant foreign nationals citizenship or long-term residence in exchange for economic contributions. Among the countries named are Antigua and Barbuda, Dominica, St. Kitts and Nevis, St. Lucia, Vanuatu, and São Tomé and Príncipe – nations where CBI revenues account for as much as 30–40% of GDP.
For these small economies, particularly ecologically and economically vulnerable island states, investment migration is not a luxury but a critical development tool. Curtailing such programmes risks driving them deeper into dependency on foreign aid, IMF support, or bilateral assistance from wealthier nations. The growing pressure – now reinforced by the threat of US entry bans – threatens to undermine one of their most sustainable and sovereign sources of revenue.
“For CBI-dependent countries, the implications are severe, both economically and politically”
A leaked State Department cable dated 14 June gives the 36 governments 60 days to present remediation plans or face travel restrictions. The directive cites issues such as poor identity documentation, high visa overstay rates, limited deportation cooperation, and concerns over the sale of passports to individuals with no genuine link to the issuing country. In some cases, it flags citizens’ involvement in terrorism or antisemitic and anti-American activities.
The 36 countries now under review span multiple continents:
- Africa: Angola, Benin, Burkina Faso, Cameroon, Cape Verde, Democratic Republic of Congo, Djibouti, Egypt, Ethiopia, Gabon, Gambia, Ghana, Ivory Coast, Liberia, Malawi, Mauritania, Niger, Nigeria, Senegal, South Sudan, Tanzania, Uganda, Zambia, Zimbabwe.
- Asia: Bhutan, Cambodia, Kyrgyzstan, Syria.
- Caribbean: Antigua and Barbuda, Dominica, St. Kitts and Nevis, St. Lucia.
- Pacific: São Tomé and Príncipe, Tonga, Tuvalu, Vanuatu.
The move follows a 4 June presidential proclamation that reinstated full bans on 12 countries – among them Afghanistan, Iran, Libya, and Yemen – and partial bans on seven others, including Cuba, Laos and Venezuela. The administration is believed to be applying a three-tier system: red for full bans, orange for partial access, and yellow for countries given a final 60-day window to rectify perceived failings.
Though CBI and RBI programmes are recognised tools for economic development – particularly in states with limited fiscal capacity, though not exclusively, as several EU member states and even the US and Canada have offered variants – these programmes have long attracted criticism for lapses in due diligence and national security safeguards. A recent IMGW News report underscores this tension, highlighting warnings from the Investment Migration Council (IMC) that Caribbean governments must urgently align with international best practices. The IMC has recently urged these states to enhance due diligence procedures, introduce greater transparency in applicant vetting, and strengthen collaboration with international law enforcement agencies. Failure to do so, it cautioned, risks provoking a forceful policy response from the European Union. Brussels, the report notes, may seek to limit or suspend visa-free Schengen access for countries perceived as insufficiently regulating their investment migration frameworks, particularly where citizenships are sold without meaningful residency or integration requirements.
“For these small economies, particularly ecologically and economically vulnerable island states, investment migration is not a luxury but a critical development tool”
President Biden rescinded Trump’s original travel bans in 2021, describing them as discriminatory and counterproductive. But Trump’s return to office in January has seen the revival of hardline policies, framed once again under the banner of national security. His latest order claims to protect the United States “from aliens who intend to commit terrorist attacks, threaten our national security, espouse hateful ideology or otherwise exploit the immigration laws for malevolent purposes.”
For CBI-dependent countries, the implications are severe, both economically and politically. As Washington and Brussels increase scrutiny, those relying on citizenship sales to drive economic resilience may soon find themselves shut out of the global mobility system they helped finance.
