‘A golden visa can save you from going to jail at home’
Naomi Canton: 29.03.2019
On Friday, diamantaire Nirav Modi will appear in a London court for his second plea for bail. Modi has been held in a UK prison since his first court appearance on March 20, when he was denied bail.
Nirav Modi had entered the UK on a ‘golden visa’, issued by the British government on his Indian passport, which was revoked in February this year. The golden visa, issued to investors outside the EU on a commitment to invest £2 million (Rs 18 crore) in UK government bonds or in active and trading UK companies, was apparently issued to Modi a few years ago. Revocation of passport does not affect the validity of the visa.
In court last week, the defence lawyer said he arrived in the UK in January 2018 and that is a key plank of their defence.
Reforms in rules for UK’s golden visas will also be implemented from March 29. Golden visas aim to encourage rich non-EU citizens to make substantial investments in the UK economy, by offering them the right to live, work, study and settle in Britain. But, the scheme has faced criticism, with some questioning the legitimacy of funds used to make investments.
UK government bonds, which were also a qualifying investment (or option for investment), will be excluded from March 29. UK banks will need to carry out all due diligence checks on an applicant, and applicants will now need to have held the £2 million they will invest for at least two years before making their application, or provide evidence of the source of funds. Earlier it was 90 days. Due diligence checks are done to protect from possibility of money laundering, organised crime and funding of terrorism.
This visa route was introduced in 2008 and brings 498 million euros (Rs 3,897 crore) into the UK every year. By 2018, 10,445 such visas had been granted, of which 82 were given to Indians, according to a 2018 report ‘European Getaway: Inside the Murky World of Golden Visas” by Transparency Interna tional and Global Witness.
But the report said that between 2008 and 2015 the UK Tier 1 (investor) scheme had “undertaken minimal checks on applicants’ wealth.” “Applicants were given visas before they opened a UK bank account. A number of banks interpreted the fact that individuals had been given a visa as verification from the UK Home Office that an applicant’s wealth was legitimate. Realising their mistake, the Home Office reformed the programme in April 2015. Now, applicants have to open a bank account before applying for the visa,” the report said.
But during this period, 3,000 highnet-worth individuals entered the UK “with at least £3.15 billion of questionable legitimacy,” the report said, describing golden visa schemes “are highly desirable for those associated with corruption”. “In the event that circumstances back home become unfavourable, a golden visa can effectively serve as a getout-of-jail-free card,” the report stated.
The Home Office announced on December 6, 2018, that this visa route was to be temporarily suspended, amid fears it was being used for money laundering. But after lobbying by firms that sell the visas, it was not suspended. On December 11, the Home Office said, “The Tier 1 (Investor) visa is not currently suspended, however, we remain committed to reforming the route.”
Luke Hexter, managing director of Knightsbridge Capital Partners in London, who sells such schemes, said, “The Home Office initially said it would suspend the route, as part of its ongoing efforts to tackle serious organised crime and money laundering. But it seems to have been rebutted by higher level government. We believe the reforms brought forward by the UK government will be effective, thus ensuring only reputable and trustworthy applicants will continue to be accepted into the UK tier 1 investor programme.”
On March 7, 2019, the Home Office issued a statement saying it was “bringing forward reforms to the route.” “The reformed route will better protect the UK from illegally obtained funds, while ensuring that genuine investors have access to a viable visa route,” it read.
Diamantaire Nirav Modi will appear in UK court for bail today
STEPS TO A GOLDEN VISA
1 You needed to invest at least £2m (Rs 18 crore) in active and trading UK registered companies or UK govt bonds
2 Prove you have held the £2m for at least 90 days, amount must stay invested for visa to remain valid
3 Account with a UK regulated bank for investing £2m
4 A UK address to open a bank account
5 Investors do not need to speak English to get a Tier 1 (investor visa) because, while you are allowed to work if you wish to, you do not have to
6 Investors can apply from overseas and remain overseas. Visa can be used to travel in and out of UK, or keep it in your passport as an option
7 Applicants must provide an overseas criminal record certificate for any country they’ve been present in continuously or cumulatively for 12 months or more, in the 10 years prior to their application
8 Need to have fingerprints and photograph taken at a visa centre to get a biometric residence permit
AFTER MARCH 29 REFORMS
1 Investments in UK govt bonds will no longer qualify as permitted UK investments
2 Applicants will have to prove they have had control of the £2 million they will invest for at least two years before applying, or provide evidence of the source of funds
3 UK banks will need to carry out “Know Your Client” checks and provide a statement confirming this has been done in the bank letter required for the application
4 Stronger evidence will be required that a company has a substantial presence in the UK, including registration with the Companies House and HMRC for corporation tax and payas-you-earn purposes. The company must have at least two UK-based employees, who are not its directors
Naomi Canton: 29.03.2019
On Friday, diamantaire Nirav Modi will appear in a London court for his second plea for bail. Modi has been held in a UK prison since his first court appearance on March 20, when he was denied bail.
Nirav Modi had entered the UK on a ‘golden visa’, issued by the British government on his Indian passport, which was revoked in February this year. The golden visa, issued to investors outside the EU on a commitment to invest £2 million (Rs 18 crore) in UK government bonds or in active and trading UK companies, was apparently issued to Modi a few years ago. Revocation of passport does not affect the validity of the visa.
In court last week, the defence lawyer said he arrived in the UK in January 2018 and that is a key plank of their defence.
Reforms in rules for UK’s golden visas will also be implemented from March 29. Golden visas aim to encourage rich non-EU citizens to make substantial investments in the UK economy, by offering them the right to live, work, study and settle in Britain. But, the scheme has faced criticism, with some questioning the legitimacy of funds used to make investments.
UK government bonds, which were also a qualifying investment (or option for investment), will be excluded from March 29. UK banks will need to carry out all due diligence checks on an applicant, and applicants will now need to have held the £2 million they will invest for at least two years before making their application, or provide evidence of the source of funds. Earlier it was 90 days. Due diligence checks are done to protect from possibility of money laundering, organised crime and funding of terrorism.
This visa route was introduced in 2008 and brings 498 million euros (Rs 3,897 crore) into the UK every year. By 2018, 10,445 such visas had been granted, of which 82 were given to Indians, according to a 2018 report ‘European Getaway: Inside the Murky World of Golden Visas” by Transparency Interna tional and Global Witness.
But the report said that between 2008 and 2015 the UK Tier 1 (investor) scheme had “undertaken minimal checks on applicants’ wealth.” “Applicants were given visas before they opened a UK bank account. A number of banks interpreted the fact that individuals had been given a visa as verification from the UK Home Office that an applicant’s wealth was legitimate. Realising their mistake, the Home Office reformed the programme in April 2015. Now, applicants have to open a bank account before applying for the visa,” the report said.
But during this period, 3,000 highnet-worth individuals entered the UK “with at least £3.15 billion of questionable legitimacy,” the report said, describing golden visa schemes “are highly desirable for those associated with corruption”. “In the event that circumstances back home become unfavourable, a golden visa can effectively serve as a getout-of-jail-free card,” the report stated.
The Home Office announced on December 6, 2018, that this visa route was to be temporarily suspended, amid fears it was being used for money laundering. But after lobbying by firms that sell the visas, it was not suspended. On December 11, the Home Office said, “The Tier 1 (Investor) visa is not currently suspended, however, we remain committed to reforming the route.”
Luke Hexter, managing director of Knightsbridge Capital Partners in London, who sells such schemes, said, “The Home Office initially said it would suspend the route, as part of its ongoing efforts to tackle serious organised crime and money laundering. But it seems to have been rebutted by higher level government. We believe the reforms brought forward by the UK government will be effective, thus ensuring only reputable and trustworthy applicants will continue to be accepted into the UK tier 1 investor programme.”
On March 7, 2019, the Home Office issued a statement saying it was “bringing forward reforms to the route.” “The reformed route will better protect the UK from illegally obtained funds, while ensuring that genuine investors have access to a viable visa route,” it read.
Diamantaire Nirav Modi will appear in UK court for bail today
STEPS TO A GOLDEN VISA
1 You needed to invest at least £2m (Rs 18 crore) in active and trading UK registered companies or UK govt bonds
2 Prove you have held the £2m for at least 90 days, amount must stay invested for visa to remain valid
3 Account with a UK regulated bank for investing £2m
4 A UK address to open a bank account
5 Investors do not need to speak English to get a Tier 1 (investor visa) because, while you are allowed to work if you wish to, you do not have to
6 Investors can apply from overseas and remain overseas. Visa can be used to travel in and out of UK, or keep it in your passport as an option
7 Applicants must provide an overseas criminal record certificate for any country they’ve been present in continuously or cumulatively for 12 months or more, in the 10 years prior to their application
8 Need to have fingerprints and photograph taken at a visa centre to get a biometric residence permit
AFTER MARCH 29 REFORMS
1 Investments in UK govt bonds will no longer qualify as permitted UK investments
2 Applicants will have to prove they have had control of the £2 million they will invest for at least two years before applying, or provide evidence of the source of funds
3 UK banks will need to carry out “Know Your Client” checks and provide a statement confirming this has been done in the bank letter required for the application
4 Stronger evidence will be required that a company has a substantial presence in the UK, including registration with the Companies House and HMRC for corporation tax and payas-you-earn purposes. The company must have at least two UK-based employees, who are not its directors
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