Since the introduction the Significant Investor Visa (SIV) program there have been calls for greater scrutiny of the sources of funds of the applicants. There has been a steady climb in the number of applicants and grants under the program with over AUD$2.85 billion already invested in Australia. Pressure is now mounting on DIBP to step up its checks on the investors sources of funds after Canada tightened applications for a its similar scheme to prevent money-laundering.

Under the current SIV program, the department of immigration’s case officers rely on information provided by the applicants to determine if the funds are lawful. These officers have a high degree of discretionary authority to determine if additional documents are required and what type of documents would be satisfactory. It’s not exactly clear what level of consistency there is in this process of investigations or how the case officers verify if the sources of funds are lawful.

All that is clear is that there have been a steady increase in the number of applicants and the number of grants. In contrast, Canada which recently introduced a similar scheme has shown concern over money-laundering and tightened applications for its investor visa program. Under the Canadian program “forensic accountants” from the private sector are appointed to investigate if the applicants have a ‘criminal past’ or are ‘politically exposed’.

The Australian reports that pressure is mounting on DIBP to boost scrutiny of investors trying to buy residency in Australia under the significant investor scheme after Canada tightened applications for its similar scheme.

“Experts say Australia is one of the top destinations for corrupt officials fleeing China, and with the Canadian changes there are fears the country could become a haven for white-collar criminals,” reports The Australian.

The Australian recently revealed the former chief of the giant Chinese utility State Grid was hiding out in Australia with millions of dollars he stole from the company. Chinese investigators have identified at least six other former officials and state company executives accused of bribery and embezzlement involving about $1 billion.

China recently raised concerns that Australia’s $5 million significant investor visa program (recently revamped to include a $15m “premium” investor visa) could become an easy path for criminals to escape its clutches.

Trade and Investment Minister Andrew Robb defended the integrity of the visa program, administered by the Department of Immigration, saying there had not been a problem with the SIV scheme to his knowledge.

“If there is any suggestion that a person has accumulated wealth through illegitimate means, all materials are referred to local authorities in the source countries; in the case of China, to the Chinese police,” Mr Robb told The Australian.