First, the EU will halt visa-free travel for countries with “golden passports"

Because of its scheme providing passports to wealthy individuals, the European Commission suggested suspending a visa-free travel agreement with, on Wednesday.

If EU member states support the plan, it will be the first time the EU imposes sanctions on a country for operating “golden passport” schemes, which the Commission has warned could pose security and money laundering issues. Other countries, notably those in Eastern Europe, are being watched.

The Commission has proposed suspending visa-free travel for all holders of Vanuatu passports issued after May 2015, when the country’s investment programme began in earnest. If the programme is appropriately revised, the moratorium will be lifted.

Despite the fact that some applicants appeared in Interpol’s security databases, the EU executive warned the plan was hazardous because it essentially accepted all applicants and did not adequately check them. The embassy of Vanuatu in Brussels could not be reached for comment right away.

The Commission said it was keeping an eye on nations with visa-free access to the EU that are running or proposing to run investor citizenship programmes, such as the Caribbean and Pacific islands, as well as the eastern European states of Montenegro, Albania, and Moldova.

With the exception of programmes set up by Cyprus and Malta, most EU states have their own schemes giving passports or visas to rich foreigners, which the Commission considers to be in compliance with EU laws.

Both countries are facing legal challenges from Brussels, which force them to amend or discontinue their programmers in order to avoid a fine.