Henley & Partners has struck up a deal with Moldova, whose government is looking to attract €1.3 billion in citizenship sales over the coming five years.
A contract between the Moldovan government and a ‘turnkey’ consortium including Henley & Partners was signed in Chisinau on Wednesday.
Henley & Partners are the concessionaires of Malta’s controversial Individual Investor Programme, with a main difference being that the Moldovan programme will be promoted by an international consortium, which includes Henley & Partners, which was selected by public tender.
Henley & Partners applied at the end of May for the Moldovan mandate as part of a consortium together with MIC Holding LLC (Moldovan Investment Company, or MIC), a company based in Dubai and founded to focus on strategic FDI initiatives, including the MCBI program, real estate and infrastructure development, and country branding and positioning. In addition, an agreement has been signed with the Boston Consulting Group (BCG), a leading global management consulting firm with 90 offices in 50 countries.
The consortium, which differs from the all-inclusive set-up Henley & Partners has in Malta, will provide citizenships and “government advisory” from Henley real estate and infrastructure programmes will be handled by MIC while BCG will consult the consortium on “best-in-class FDI strategy and implementation”.
In a press release, the Moldovan Economics and Infrastructure Ministry said that Moldova’s citizenship through investments would be provided only to applicants who meet “the best international standards”.
The applicants, Moldova said, will be subjected to a verification of the economic and financial reputation, which will be carried out in four stages. The verifications at the first levels will be carried out by world diligence companies and will be focused on the checking of case histories and validation of information contained in application forms. The last level will include a rigorous analysis of the applicants for the programme through such authorities as the Interpol, Intelligence and Security Service, Interior Ministry (MAI), National Anticorruption Centre (CNA).
“Citizenship for investments is a form which is applied in more states, such as Latvia, Malta, Cyprus, Canada, Australia. The government has worked out this instrument, having at the basis good international practices and relying on the identification of a good partner,” Economics and Infrastructure Minister Chiril Gaburici said.
Under the contract, the consortium promoting the scheme will bear the economic risk, initial and continuous costs and expenses related to the technical designing, implementation, consultative activity, providing training, as well as international promotion of the programme. The services provided and its costs and spending will be “covered from the commissions paid by the applicants for the citizenship against investment”.
Marco Gantenbein, a member of Henley & Partners' Global Executive Committee and a Managing Partner, explains: “It was clear to both MIC and ourselves that only a collaborative consortium encompassing the leading companies in each strategic area would be able to deliver a successful program to Moldova, with ‘success’ defined here as tangible benefits generated for the country and its people through the establishment and operation of a program with the highest standards of integrity and due diligence.”
Moldova’s Minister of Economy and Infrastructure, Chiril Gaburici, says his government’s primary objective is to create long-lasting societal value for the Moldovan people. “The MCBI program will provide our economy with valuable FDI that will enhance the daily lives of all Moldovans. Uncompromising due diligence standards and compliance procedures will guarantee the credibility, competitiveness, and long-term sustainability of the program. In this regard, we are delighted to be working with Henley & Partners, whose good governance systems are industry-leading.”
Gantenbein adds: “In addition to the global mobility, flexibility, and access they give private clients, investment migration programs bring significant benefits to host countries. The inflows of funds and talent are considerable, and the macro-economic implications for most sectors can be extensive. We also see our role as contributing to a more interconnected and more tolerant world. FDI increases the value of the receiving state, bringing in capital to both the public sector — in the form of donations to a country’s sovereign wealth fund, for example — and the private sector — in the form of investments in businesses or real estate. They allow for the greater socio-economic development of often smaller countries that face particular challenges when competing in a global context.”
In discussing the merits of the future MCBI program in particular, Gantenbein says that the program is poised for success on account of its competitive pricing structure and strong value proposition. “Moldova, a country of four million inhabitants, offers its citizens visa-free access to 121 destinations, including all the countries in Europe’s Schengen Area but also, for example, Russia and Turkey. It has entered into an association agreement with the EU and is aiming to become a candidate country for EU membership,” explains Gantenbein.
“The MCBI program, which we expect to be launched within the next three months, offers both affordability and travel freedom to individuals and families and will have wide-ranging appeal for the rapidly growing investment migration client base worldwide. Crucially, however, the program promises to generate much-needed capital and international visibility for this beautiful country in Europe, which will improve the overall prospects and quality of life of its small but vibrant population.”