THE HOME secretary has closed a VIP visa scheme for wealthy investors over fears of Russian exploitation in the UK.
The Tier 1 investor visa was available for people who had more than £2m in investments and a UK bank account.
Critics have previously raised concerns that the scheme was being exploited by Russian oligarchs to gain access to the UK.
Reports emerged this morning suggesting that it was to close next week, when Parliament returns from recess, however the Home Office have now confirmed it has been scrapped immediately.
The department said it had taken the decision following concerns about using the scheme to gain illegitimate wealth, and feed this in to wider global corruption.
The route had allowed entry and stay in the UK if an applicant invested funds in share capital or loan capital in active and trading UK registered companies.
The Home Secretary's officials claim that it shows her commitment to the New Plan for Immigration, and that overseas investors will still be able to apply to come to the UK under a reformed 'innovator' visa scheme.
The Home Office said it plans to reform the Innovator visa route, which forms part of the points-based immigration system being implemented in the UK, to provide an "ambitious investment route" that supports the UK economy.
Ms Patel said: "I have zero tolerance for abuse of our immigration system. Under my New Plan for Immigration, I want to ensure the British people have confidence in the system, including stopping corrupt elites who threaten our national security and push dirty money around our cities.
“Closing this route is just the start of our renewed crackdown on fraud and illicit finance. We will be publishing a fraud action plan, while the forthcoming Economic Crime Bill will crackdown on people abusing our financial institutions and better protect the taxpayer.”
Visas for investors will now be conditional on them showing a strategy for investment which will create jobs in the UK, as well as other tangible economic impacts.
Those only "passively holding" investments will not qualify under the new plans, according to the Home Office.
Alyn Smith MP, the SNP's Foreign Affairs spokesperson, said: "The golden visa scheme has been exploited for years, providing corrupt individuals and hostile states with a convenient route to place themselves at the heart of British public life.
"The Russia Report - which the SNP has repeatedly called on the UK government to implement in full - also highlighted the threat posed by the golden visa scheme.
"The move to scrap it is welcome but it does not go nearly far enough to tackle the threats posed by illicit finance or the Tory party's close links to Kremlin-linked cash."
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