Have you long been planning to obtain Vanuatu’s economic citizenship but kept postponing it for “better times”? Those “better times” may never come. At the beginning of 2025, the island nation tightened its candidate checks, and since September, personal presence at a Vanuatu diplomatic mission has been required to submit biometrics and receive a passport. But that’s not it.
One of Australia’s largest banks, the Commonwealth Bank of Australia (CBA), and its New Zealand subsidiary ASB Bank have announced that starting from October they will cease correspondent banking relations with the National Bank of Vanuatu (NBV). As a result, executing payments under the local passport scheme will become significantly more complicated. It may be time to “catch the last train”!
Reasons and Consequences of Losing Correspondent Relations
The termination of cooperation between NBV on one side and CBA and ASB Bank on the other is part of a process affecting the entire Pacific region. Australian and New Zealand banks are gradually withdrawing correspondent banking relationships with financial institutions of neighboring small island states, citing a combination of factors:
- High regulatory burden;
- Low profitability;
- Increasing risks related to compliance and combating financial crime.
The decision of CBA and ASB means that transfers in Australian and New Zealand
dollars—widely used in the local passport program—will no longer be serviced. Specifically, these banks were often used to process:
- Contribution donations under the Development Support Program (DSP);
- Refundable investments under the Capital Investment Immigration Plan (CIIP).
NBV has already proposed alternative routes via other banks and switching to US dollars and Japanese yen. However, the transition will inevitably lead to slower operations and higher costs.
The consequences affect not only NBV but also the government of Vanuatu, for which passport programs are an important source of revenue. The loss of a reliable payments channel threatens budget inflows and could undermine the country’s stable development overall.
Deteriorating Relations Between Vanuatu and Australia
The refusal of CBA and ASB Bank to continue cooperation with NBV also fits into a broader political and economic context. In recent years, relations between Canberra and Port Vila have become noticeably strained.
In September 2025, Australian Prime Minister Anthony Albanese visited Vanuatu to sign the Nakamal Agreement, which envisioned up to AUD 500 million for assisting with Vanuatu’s major priorities, such as climate change issues and other projects. However, Vanuatu’s current Prime Minister Jotham Napat declined to immediately sign, citing the need for further discussion of terms. The main disagreement concerned Vanuatu’s right to seek infrastructure financing from alternative partners, including China.
This episode revealed diverging priorities. Australia seeks to consolidate its role as Vanuatu’s main strategic partner in the region and contain growing Chinese influence. Vanuatu, committed to a philosophy of non-alignment, aims to preserve flexibility in choosing partners and creditors.
Past agreements have also faltered: a 2022 security agreement never passed parliamentary ratification in Vanuatu. As a result, trust in bilateral initiatives has declined.
The Shift of Australian Banks Harms Other Countries with Passport Schemes
Australian banks have been steadily reducing their Pacific presence since the early 2010s. Between 2011 and 2022, small island states in the region lost about 60% of their correspondent banking relationships with Australian institutions.
The reasons are clear: Pacific markets are small, fragmented, and unprofitable. Each jurisdiction has its own rules and tax requirements, increasing costs for major players. At the same time, international regulators have tightened control over cross-border transactions. As a result, Australian banks are abandoning operations tied to high compliance costs and low margins.
In 2024, Bendigo Bank withdrew from Nauru, which launched its citizenship-by-investment program later that year. Another large bank, ANZ, closed several branches in Papua New Guinea and other Pacific nations. Against this backdrop, the moves by CBA and ASB only continue the trend.
Payments Through China
In July 2024, former Vanuatu Prime Minister Charlot Salwai visited the Bank of China headquarters and suggested opening a branch in Vanuatu’s capital, Port Vila. According to him, the presence of a Chinese bank would simplify foreign trade settlements and reduce dependence on the US dollar.
The initiative is especially relevant for Vanuatu, where a significant share of imports comes from China, and one of the main export items is providing immigration services to Chinese nationals.
The Bank of China has not yet officially commented on the proposal. However, Salwai’s initiative highlights Vanuatu’s intention to strengthen economic ties with its northern neighbor and adapt to new realities of the regional financial architecture.
Vanuatu Citizenship Through Cryptocurrency
Vanuatu remains one of the few countries where cryptocurrency can be used to obtain citizenship by investment. The government does not accept BTC or ETH directly, but authorized immigration agents convert digital assets into fiat and remit them to the state treasury. The process is fully remote, with no need to open a foreign bank account.
Despite clear advantages, there are limitations. Payments are only possible through intermediaries, which increases dependence on their reputation and reliability. Candidates must also undergo enhanced compliance checks and prove the origin of their crypto assets.
Citizenship Through Investment Is Becoming More Difficult: A Global Trend
Obtaining citizenship through investment is becoming increasingly difficult worldwide. European countries are closing their programs one by one: Malta—following an EU Court decision; Cyprus and Bulgaria—after corruption scandals; Montenegro and Moldova—due to concerns about hindering EU integration.
Turkey has introduced double checks on applicants through Interpol databases. Caribbean states have raised minimum investment thresholds, banned or severely restricted name changes after receiving passports, and made interviews mandatory.
Still, exceptions remain. For example, in 2025, São Tomé and Príncipe officially adopted a citizenship-by-donation law, offering one of the cheapest products on the market. Against the backdrop of tightening rules in Europe and the Caribbean, such offers appear particularly attractive. Our portal’s team can help you take advantage of one of them.
16 September 2025 