Article 5 Requirements relating to the granting of residence rights in exchange for investment

1. a risk management process, including the identification, classification and mitigation of risks under the coordination of a designated authority;

2. measures providing for the mitigation of risks of money launderingmeans the conduct set out in Article 3, paragraphs 1 and 5, of Directive (EU) 2018/1673 including aiding and abetting, inciting and attempting to commit that conduct, whether the activities which generated the property to be laundered were carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances;, its predicate offences or terrorist financingmeans the conduct set out in Article 11 of Directive (EU) 2017/541 including aiding and abetting, inciting and attempting to commit that conduct, whether carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances; associated with applicants for the granting of residence rights in exchange for investment including:

   1. checks on the profile of the applicant by the designated authority, including obtaining information on the source of fundsor ‘property’ means property as defined in Article 2, point (2), of Directive (EU) 2018/1673; and source of wealth of the applicant;

   2. verification of information on applicants against information held by competent authoritiesmeans:a Financial Intelligence Unit (FIU);a supervisory authority;a public authority that has the function of investigating or prosecuting money laundering, its predicate offences or terrorist financing, or that has the function of tracing, seizing or freezing and confiscating criminal assets;a public authority with designated responsibilities for combating money laundering or terrorist financing; as referred to in Article 2(1), point (44)(a) and (c), of Regulation (EU) 2024/1624 subject to the respect of the applicable national criminal procedural law and against lists of individuals and entities subject to Union restrictive measures;

   3. periodic reviews of medium and high-risk applicants.

Member States shall ensure monitoring of implementation of the risk management process as referred to in paragraph 1, point (a), including by assessing it on an annual basis.

Member States shall adopt and implement the measures referred to in paragraph 1 of this Article in a manner consistent with the risks identified under the risk assessment carried out pursuant to Article 8.

1. the number of received applications and of countries of origin of the applicants;

2. the number of residence permits granted or rejected, and the reasons for such rejections;

3. any evolution detected in the risks of money launderingmeans the conduct set out in Article 3, paragraphs 1 and 5, of Directive (EU) 2018/1673 including aiding and abetting, inciting and attempting to commit that conduct, whether the activities which generated the property to be laundered were carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances;, its predicate offences and terrorist financingmeans the conduct set out in Article 11 of Directive (EU) 2017/541 including aiding and abetting, inciting and attempting to commit that conduct, whether carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances; associated with the granting of residence rights in exchange for investment.

By 10 July 2028, Member States shall notify the Commission of the measures adopted under paragraph 1 of this Article. That notification shall include an explanation of those measures based on the relevant risk assessment carried out by Member States pursuant to Article 8.

The Commission shall publish in the Official Journal of the European Union the measures notified by Member States pursuant to paragraph 5.

By 10 July 2030, the Commission shall publish a report assessing the measures notified pursuant to paragraph 5 in mitigating the risks of money launderingmeans the conduct set out in Article 3, paragraphs 1 and 5, of Directive (EU) 2018/1673 including aiding and abetting, inciting and attempting to commit that conduct, whether the activities which generated the property to be laundered were carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances;, its predicate offences and terrorist financingmeans the conduct set out in Article 11 of Directive (EU) 2017/541 including aiding and abetting, inciting and attempting to commit that conduct, whether carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances; and, where necessary, issue recommendations.