19 Mar 2025

Vanuatu defends passport scheme in face of travel ban reports

10:16 am on 19 March 2025
Vanuatu passport

Vanuatu passport Photo: Andrew Gray

By Harry Pearl, BenarNews

The Vanuatu government said it had not yet received any formal communication from the Trump administration about the country's reported inclusion in a sweeping travel ban on citizens of dozens of nations, while a US spokesperson denied the existence of such a list.

Vanuatu is one of over 40 countries reported to be on an immigration watchlist that includes three different levels of restrictions, according to an article by the Reuters news agency, citing sources familiar with the ban and an internal memo.

Included on the lowest tier, Vanuatu is the only Pacific nation on the list, the report said.

"At this stage, the government has received no formal communication from the US authorities on this matter but expects to engage in discussions in due course," said a statement from Port Vila on Tuesday.

The first group of 11 countries on the watchlist, including Afghanistan, Iran and North Korea, was subject to a full visa suspension, Reuters said.

The second group of nations - Eritrea, Haiti, Laos, Myanmar and South Sudan - faced a partial ban that would affect students, tourists and other immigrant visas, but allow business travelers.

The third group, which includes Vanuatu, faces a partial suspension of US visa issuance if their governments "do not make efforts to address deficiencies within 60 days," the report said.

The New York Times, which first reported on the list, said countries in the third group would have to address issues such as inadequate security for issuing passports or selling citizenship to people from banned countries.

US President Donald Trump signs an Executive Order on reciprocal tariffs in the Oval Office of the White House in Washington, DC, on February 13, 2025. Trump announced that he would impose "reciprocal tariffs" on trading partners, opening new fronts in his trade war. The move would match US tariff rates on imports to the levels that other countries impose on US goods. (Photo by ANDREW CABALLERO-REYNOLDS / AFP)

US President Donald Trumpsigning executive orders in the White House in Washington. Photo: AFP / Andrew Caballero-Reynolds

Responding to a reporter's question in Washington on Monday, State Department spokeswoman Tammy Bruce said there was no list.

"What people are looking at over these last several days is not a list that exists here that is being acted on. There is a review, as we know, through the president's executive order, for us to look at the nature of what's going to help keep America safer in dealing with the issue of visas and who's allowed into the country," Bruce said, according to a transcript of her press briefing provided to BenarNews.

"But what has been touted as something that is an item through the State Department just simply isn't the case," she said.

"… ut certainly when that review is done, we'll have something that we can discuss."

The White House, meanwhile, did not immediately respond to a BenarNews request for comment.

Citizenship payment scheme

Vanuatu has long faced criticism for its lucrative citizenship by investment (CBI) program, which allows an individual applicant to gain citizenship by investing US$130,000 in the country.

The scheme has thrown up so many red flags that late last year the European Union cancelled the South Pacific nation's visa-free access to the bloc's Schengen area.

An explanatory note accompanying the decision highlighted a lack of rigor in vetting and background checks, posing a "serious (security) threat."

In 2023, it was revealed that wealthy Indian-born businessmen Atul and Rajesh Gupta, who are wanted by South African authorities for alleged political corruption, have Vanuatu citizenship.

Earlier this month it emerged that fugitive Indian cricket administrator Lalit Modi had applied to officially renounce his citizenship after acquiring Vanuatu passport.

Modi has been accused of bid-rigging and taking kickbacks while in charge of the Indian Premier League cricket competition.

Under pressure from India, Vanuatu Prime Minister Jotham Napat last week ordered the Citizenship Commission to cancel a passport that was issued to Modi.

The government also terminated the passports of three Chinese nationals who allegedly obtained them fraudulently, the Vanuatu Daily Post reported last week.

Port Vila on Monday defended its citizenship by investment scheme.

"It is important to note that eight of the countries listed have citizenship by investment programs, and that Vanuatu has significantly strengthened its own program over the past years, particularly in due diligence and applicant screening," the statement said.

"Vanuatu maintains a strict list of restricted nationalities that are ineligible to apply for citizenship, ensuring that only applicants who meet stringent security and compliance measures can qualify."

The government said it welcomed feedback from international partners and was committed to strengthening its citizenship program, which "continues to generate critical revenue for national development."

"This is particularly important as traditional development assistance declines, requiring Vanuatu to pursue sustainable and responsible revenue streams," it said.

Pacific analyst Tess Newton Cain said Vanuatu had in recent years made an effort to reform the CBI scheme to meet international best practices.

"There is a new chair of the Citizenship Commission and the previous head of the Financial Intelligence Unit was removed after allegations of malpractice," said Newton Cain, who is the principal at development consultancy Sustineo.

"There have been some significant changes made quite recently…it is likely too early to tell how effective they are," she told Benar News.

Reports of the new travel restrictions follow an executive order signed by US President Donald Trump on 20 January requiring intensified security vetting of any foreign travelers to detect national security threats.

During his first term, Trump issued an executive order blocking refugees and travelers from seven Muslim-majority countries.

-This article was first published by BenarNews

Get the RNZ app

for ad-free news and current affairs