The European Union has urged Caribbean nations to shut down their golden passport programmes, warning that countries which keep selling citizenship to investors could face travel restrictions, CNBC reports.

The demand targets the citizenship-by-investment schemes operated by several Caribbean states. Under these programmes, foreign nationals obtain a passport — and the visa-free access that comes with it — in exchange for a qualifying investment or donation, without a prior period of residence.

At stake for the Caribbean governments is visa-free movement into the EU's Schengen area, which their citizens currently enjoy. The EU's warning signals that continued operation of the schemes could put that access on the line.

Brussels has long argued that golden passports carry security risks. Because citizenship is granted in exchange for money rather than residence or genuine ties, EU officials worry the schemes can be exploited for money laundering, tax evasion and irregular entry into Europe by people who would not qualify for a visa on their own merits.

The Caribbean programmes are among the best known in the global citizenship-by-investment market. Applicants typically choose between a one-off contribution to a state fund, an investment in approved real estate, or stakes in designated business ventures, with minimum thresholds set by each country.

For the EU, the core problem is the passport itself. A Caribbean passport generally allows its holder to enter Schengen countries without a visa. European institutions have pressed seller states for years to tighten due diligence, share applicant data and raise minimum investment floors, and several Caribbean governments have already introduced reforms along those lines.

The latest warning raises the stakes. Rather than asking for tighter screening alone, the EU is now pressing Caribbean nations to close the programmes outright, with travel restrictions presented as the consequence of refusal.

No closing date for the schemes, exact sanctions mechanism or implementation deadline has been announced alongside the reported demand. Caribbean governments have not yet set out a common position in response.

Applicants and advisers should monitor announcements from the European Commission and from the citizenship-by-investment units of the countries concerned before acting on any pending or planned application. Any change to visa-free arrangements would take effect only through a formal EU decision affecting the countries' visa waiver status.

Passport File will track further details, including any named deadlines or country-by-country responses, as officials publish them.