“Citizenship by Investment” (CBI) and “Residence by Investment” (RBI) schemes are offered by a number of jurisdictions to foreign individuals wishing to obtain a citizenship or residence on the basis of local investments or against a flat fee.
CBI/RBI can be misused to undermine the Common Reporting Standard (CRS).
This occurs when a customer claims to be resident for tax purposes of the CBI/RBI jurisdiction to a Bank, instead of his/her real jurisdiction.
He/she can provide the Bank with supporting documentation issued under the CBI/RBI scheme, such as “certificate of residence”, or “passport”.
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