SCHENGEN-STYLE VISA FOR ALL THE GCC COUNTRIES COULD HAVE UNINTENDED CONSEQUENCES - THE FACILITATION OF MONEY LAUNDERING

News that the countries of the Middle East's Gulf Cooperation Council (GCC) are in discussions, at the ministerial level, to create a unified visa that would allow visitors from outside the region to travel to all the GCC jurisdictions. The concept is similar to the Schengen Visa, which allows foreign nationals from countries not part of the EU visa waiver system to travel all over Schengen Zone Europe.

The existence of the negotiations, which were made public by the Minister for Tourism in Bahrain, appear to be favored by all the GCC countries to promote expanded tourism, encouraging visits to more than one jurisdiction while on holiday. Personally, I have had experiences with the delays that occured when I was lecturing in several countries in the region, one after another. The Visa on Arrival issue, ignoring the costs, makes efficient and speedy arrivals more difficult, especially when one is on a tight schedule. I can see how tourists will end up passing on multi-country visits on holiday for that reason alone. 

I am concerned, however that a unified visa will allow career money launderers to multi-task, placing illicit funds in on GCC jurisdiction, then effortlessly, and posing as tourists, layer other funds from one country to another,  repatriate cleaned client wealth, or any number of illegal acts, all facilitated by their visa-free, low-profile travel freedom within the GCC. Given that there's no real-time sharing of information on financial criminals, who will flit from one place to another, which will most likely make round-tripping, as well as other techniques, faster and easier to accomplish.

Unfortunately, it will take some time, after the GCC visa program goes live, to determine whether my fear of increases in Middle East money laundering can be ascertained. We will have to wait and see, but I am concerned that this plan, designed to facilitate and increase tourism, will have the unintended consequence of helping the laundrymen clean and transfer the proceeds of crime.