Nothing to Hide? Transparency Requirements, Accountability, and Privacy in Investment Migration

Abstract

Various measures have been proposed to address risks associated with Citizenship by Investment (CBI) and Residence by Investment (RBI) programmes. Some of these measures relate to increased transparency, which in turn raises questions related to privacy. Specifically, measures include the publication of the identity of those who acquire a legal status via a specific CBI or RBI programme. In this chapter, we consider whether CBI and RBI programmes require greater transparency and how measures to establish it could look like. Our findings are based on the analysis of ongoing policy developments with a focus on the European situation, review of literature, as well as consideration of relevant governance and legal frameworks, especially those relating to data protection and privacy. We observe that, while greater transparency seems necessary to facilitate accountability and thereby mitigate risks associated with these programmes, publication of the identities of those who naturalise may ultimately be a ‘bad compromise’, unfit to achieve the overarching purpose. In essence, it is not individuals who have to demonstrate that they have ‘nothing to hide’, but governments. As such, disclosure can not constitute an appropriate substitute for the implementation of effective due diligence and oversight mechanisms, which are essential to safeguarding the rule of law.

Keywords: Investment Migration, Privacy, Data Protection, Transparency, Citizenship by Investment, Residence by Investment