Vanuatu Halts CIIP Applications Indefinitely

Vanuatu’s Citizenship-by-Investment Program: Navigating Future Trends and Reforms

The Recent Suspension of the CIIP Program

Vanuatu’s Citizenship Commission has taken a significant step by halting all new applications under the Capital Investment Immigration Plan (CIIP) for 2025. The suspension, which went into effect on March 17, 2025, is set to remain until further notice. This decision, as per an official memo issued to agents, follows direct instructions from the Prime Minister’s office through Cabinet of Ministers Decision NO.012 of 2025.

The CIIP is a citizenship-by-investment program that requires applicants to invest in government-designated funds, such as the CIIP-Cocoa Fund, Melekule Cocoa Farming, and CIIP-CNO Future Fund. Unlike the Development Support Program (DSP), which relies solely on donations, the CIIP aims to attract foreign investments into key sectors of Vanuatu’s economy.

The Rationale Behind the Suspension

The suspension was well-anticipated, as the review of the CIIP was identified among the top 10 priorities in the new government’s 100-day plan. The primary objective is to strengthen the program and enhance compliance measures. Glen Craig, Managing Partner of Pacific Advisory, explained that the government aims to prevent illegal discounting and ensure accountability of investments received by agents under the CIIP.

Manpreet Kataria, Managing Director at Alpha Immigration Associates, highlighted that the government has recently revoked a few fraudulently obtained passports to tackle negative publicity around the program. This step is part of a broader effort to ensure a level playing field and maintain the integrity of the CIIP.

The Path Forward: New Regulations and Enhanced Compliance

The Citizenship Commission plans to introduce a new CIIP regulation, which will be finalized by the Office of the Attorney General and signed by the Prime Minister. This new regulation is expected to drastically reduce the number of designated agents, establish specific guidelines around investment requirements, and provide clear parameters regarding government investment sector priorities.

Pro Tip: Stay informed about the upcoming changes by regularly checking official updates from the Vanuatu Citizenship Commission.

Daniel Agius, Director of VIMB Services Limited, welcomed these reforms, stating that they will create a more transparent and sustainable investment framework. Craig also anticipates a potential price increase to align with EU suggested requirements and follow similar adjustments observed in Caribbean programs.

Impact on Existing Applications and Agents

Recently processed applications remain unaffected by the suspension. According to Craig, the Citizenship Commission has recently processed a substantial number of outstanding applications. However, there may be a two to three-week delay for the next sitting while the new draft regulations undergo consultation with key designated agents of the program.

The Citizenship Commission assured agents that they will receive information about the appropriate date for the commencement of the new regulation and the contracts to be signed. Kataria noted that many agents were underselling and making false advertising claims, and these issues are being addressed to ensure a level playing field.

Other Citizenship-by-Investment Options

It’s important to note that the suspension applies only to the CIIP program. Vanuatu’s other citizenship by investment options, the DSP and VCP (Chinese applicants only), remain active and available to eligible applicants.

Leadership Changes and Future Outlook

The suspension comes after President Nikenike Vurobaravu appointed Charlie Maniel as the new Chairman of the Vanuatu Citizenship Commission for a five-year term on March 8, 2025. This leadership change is expected to bring fresh perspectives and stronger oversight to the program.

Craig notes that over the past two years, the government has already implemented more rigorous due diligence requirements, which have proven highly effective. This has led to a significant increase in application rejections by the Financial Intelligence Unit, effectively preventing potentially unsuitable applicants from proceeding to the Citizenship Commission stage.

Global Implications and Future Trends

The EU voted to permanently suspend Vanuatu’s visa-free access in 2024, and now the country has appeared on a reported US travel ban list. These developments compound the current situation and underscore the need for Vanuatu to strengthen its citizenship-by-investment programs.

Did you know? Vanuatu’s CIIP program has been a significant source of foreign investment, contributing to the country’s economic development. The upcoming reforms aim to ensure that this investment continues to benefit Vanuatu’s economy in a transparent and sustainable manner.

FAQ Section

Q: Will the suspension affect my existing CIIP application?

A: No, recently processed applications remain unaffected by the suspension. However, there may be a delay in processing new applications.

Q: What changes can we expect in the new CIIP regulation?

A: The new regulation is expected to reduce the number of designated agents, establish specific investment guidelines, and implement stronger accountability measures.

Q: Are other citizenship-by-investment options in Vanuatu still available?

A: Yes, the Development Support Program (DSP) and the Vanuatu Contribution Program (VCP) for Chinese applicants remain active and available to eligible applicants.

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Table: Key Points of the CIIP Suspension