The European Travel Information and Authorisation System (ETIAS) is set to become operational in the latter half of 2025, requiring all citizens from outside the European Union to fill out an application for travel authorization. The ETIAS zone covers all 27 member countries of the EU, plus those nations that belong to the Schengen Agreement but are not included in the EU.
Foreign nationals from outside the European Union will soon be required to gain approval through the ETIAS system before traveling to, leaving from, or transiting through Europe. This new rule will apply to all non-EU passport holders and will require them to complete an electronic application form in advance of their intended travel period.
The citizens of the small South Pacific nation of Vanuatu were recently removed from the European Union’s ETIAS visa-waiver program. This was due to the country breaching the terms and conditions of the program, however other non-European countries are still able to benefit from ETIAS-free access to Europe subject to certain requirements being met.
Violation of Rules
In 1980, Vanuatu gained independence from the United Kingdom and France, quickly becoming a member of both the United Nations and the Commonwealth of Nations. In 2015, the European Union signed an agreement with Vanuatu which allowed citizens to enter certain EU and Schengen countries without a visa. This waiver enabled travelers from Vanuatu to stay in these countries for short-term visits.
Late in 2017, a major issue with the Republic of Vanuatu arose when it was included in a list of non-cooperative tax jurisdictions. This was due to allegations that the country had been aiding or ignoring money laundering activities, tax evasion, and potentially financing terrorism. The release of this list created serious doubts and raised numerous questions, even though it was not endorsed by the European Parliament.
As a result of these allegations, the European Union began a review of its visa waiver agreement with Vanuatu. The review led to the suspension of the visa waiver in 2018, causing significant backlash and concern within Vanuatu.
In response, the Vanuatu government implemented new measures to strengthen its financial regulatory framework and improve its compliance with international standards. These measures included the establishment of a Financial Intelligence Unit and the adoption of new laws on money laundering and terrorist financing.
Despite these efforts, the visa waiver has not yet been reinstated, and the issue remains a source of tension between Vanuatu and the European Union.
Suspected Breaches
In 2016, The Republic of Vanuatu made a controversial move by introducing two Citizenship by Investment schemes, namely the VDSP (Vanuatu Development Support Programme) and the VCP (Vanuatu Contribution Programme), which granted foreign nationals to purchase citizenship. This move has been met with great criticism from the European Parliament as it raises concerns about being abused by malicious individuals.
Under these schemes, a foreign national could acquire Vanuatu citizenship by investing a minimum amount of $130,000 (£100,000) towards the nation’s economy. This would grant them access to a Vanuatu passport and with it, visa-free traveling throughout Europe without any need of applying for an ETIAS permit or any other kind of visa validation.
In 2019, there was a heightened sense of concern among European governments that Vanuatu may not be conducting proper background checks on foreign nationals who were being granted citizenship. This anxiety extended beyond just the regular due diligence processes, and several voices raised questions about the effectiveness of the country’s screening processes.
In January 2022, the European Commission announced its intention to suspend visa-free travel for Vanuatu passport holders due to the failure of the Vanuatu authorities to take any action to improve and strengthen the screening process associated with their Citizenship by Investment schemes. The Commission expressed concern that this inaction could further jeopardize the security and integrity of Europe’s borders.
After extensive deliberation of the European Commission’s proposal, the EU Council took a definitive decision to suspend temporarily the visa exemption agreement with Vanuatu. This action was taken despite the nation’s right to launch an appeal against this ruling.
Reasons for Concern in the European Union
The European Union has expressed significant apprehension with regard to the Citizenship by Investment programs offered by Vanuatu. They have raised serious doubts that criminals and terrorists have exploited these schemes as an avenue to gain access to Europe without undergoing adequate background checks on individual applicants.
This has led the EU to take steps towards introducing ETIAS, a new security measure to help protect Europe, deter any criminal activity and keep terrorists at bay.
Among the reasons provided for the suspension of visa-free travel for Vanuatu passports holders are:
- Processing time for application is not enough for proper screening procedures.
- There are almost zero rejections for passports with only a single denial recorded before 2020.
- Applicants whose names appear on Interpol security databases have been granted citizenship.
- Many countries that require visas for European travel have successful applications.
The European Union has become increasingly worried about how the ability to travel visa-free within the European zone has been used as the main selling point for obtaining golden passports. This is viewed by EU authorities as a serious security issue that must be addressed in order to protect the safety and integrity of their borders.
In addition, there have been concerns about the potential for money laundering and corruption in the process of obtaining Vanuatu citizenship and its associated benefits, including visa-free travel to the EU.
The suspension of visa-free travel is intended to address these issues and ensure that the EU’s visa-free travel policy is not being exploited for illegitimate purposes. The suspension will remain in place until the EU is satisfied that the necessary measures have been put in place to address these concerns.
Vanuatu Passport Holder Consequences
Due to the suspension of certain privileges imposed by the European Union Council, those that hold a Vanuatu passport have been and will continue to be, impacted. Individuals who are nationals of Vanuatu or those that purchased their passports after May 25th, 2015 no longer benefit from visa-free travel to countries within the European continent.
Citizens of Vanuatu will not be able to access the ETIAS system when it comes into effect, thus requiring them to apply for a visa even if they are only planning to visit the Schengen Area for a short amount of time.
When ETIAS becomes a requirement for Vanuatu citizens, they will likely require a Schengen Visa to gain entry into European countries. Unlike an ETIAS application which can be completed online, a Schengen Visa application needs to be done in person. This process requires the applicant to undertake an interview with the relevant embassy responsible for the intended European trip and to provide any documents related to it.
Conclusion
The suspension of visa-free access to Vanuatu will stay in effect until all safety concerns related to the purchase of golden passports are resolved. The EU Council has put forth numerous recommendations for the Vanuatu officials to abide by. However, if Vanuatu does not follow these rules and regulations, it could have a lasting impact on the island nation’s economy.
The EU may decide to remove Vanuatu from its visa-free list and ETIAS acceptance, which could have negative consequences for the country’s tourism industry and overall economic growth. It is important for Vanuatu to take the EU’s recommendations seriously and take steps to address any concerns in order to avoid these negative outcomes.