'Golden passports': EU launches legal action against Cyprus and Malta

Brussels says schemes selling citizenship to wealthy investors are illegal

Brussels has launched legal action against Cyprus and Malta over their golden passport" schemes for wealthy investors, saying they were illegal and undermined EU citizenship.

The European commission has written to the two countries, which both joined the EU in 2004, to demand explanations, warning that the schemes increased the risks of money laundering, tax evasion and corruption.