An Analysis of Due Diligence Standards and Practices
The Due Diligence report analyses the due diligence standards across jurisdictions with particular reference to Citizenship by Investment Programmes. The Report goes on the give its recommendations of due diligence checks and shows that Malta ranks as one of the top jurisdictions with regard to due diligence standards.
Given the criticism the Investment Migration Industry has had to face in the last couple of years, Chetcuti Cauchi has set out to compile a comprehensive assessment of due diligence procedures followed by Citizenship by Investment Units (CIUs) or responsible agencies. The CIP Due Diligence Index assesses the current due diligence procedures adhered in relation to Citizenship by Investment Programmes (CIPs). In addition to this, we propose an industry-wide due diligence framework based on the in-depth study and consequent results of the Index.
The Index ranks the due diligence across Citizenship by Investment Programmes based on Chetcuti Cauchi’s 5 Pillars of CIP Due Diligence: Identification, Financial Due Diligence, Clearances, Enhanced Due Diligence, and Reputation. The 5 Pillars are comprised of 38 different criteria.
The need for a CIP Due Diligence Index
Beyond ranking due diligence, the CIP Due Diligence Index also addresses the primary concerns of relevant international institutions regarding perceived external repercussions of the investment migration industry. These have mainly revolved around security concerns, risks of money laundering, and the potential for circumventing EU laws and evading tax.
The CIP Due Diligence Index addresses these concerns by putting forward a detailed overview of the established due diligence and compliance standards followed across the Citizenship by Investment industry. Based on this analysis, and having accumulated more than 15 years of experience in the industry, we also propose what more could be done to enhance procedures across the industry, as well as solidify its international standing and cohesiveness.
- For the full CIP Due Diligence Index click here!
