A report says wealthy Chinese, once courted by an Australian "golden visa" regime, aren't going after it in such great numbers as before.

Australia’s visa regime aimed at high net worth individuals, one of a number of “golden visa” regimes operated by jurisdictions, is being “snubbed” by wealthy migrants as applications sag, according to the South China Morning Post. 

The six-year-old regime in Australia is pitched at Chinese investors willing to invest at least A$5 million ($3.8 million) in Australia. 

The report said Australia’s Austrac, a financial regulator that has cracked down on issues such as money laundering, had in 2016 warned there were problems identifying sources of funds for users of such visas.

Australia’s significant investor visa system is, the report says, aimed at Chinese HNW individuals although any foreign national able to pay the amount can sign up. The scheme was launched in 2012 and so far 87 per cent of SIVs granted have been to Chinese nationals. In the first three years of the scheme, almost 900 visas were granted; the system was tightened during 2015 amid concerns over possible abuses. The SCMP said rules compelled investment in venture capital rather than holding government bonds.

The number of visa grants has slowed significantly, the report said. 

One of the ironies - as noted by this news service - of China's ascent as an economic power is that while it has created a large number of millionaires, uncertainties about the future, the nature of the communist regime and desire for options means many have sought to leave the country or obtain second citizenships. 

A number of countries such as Spain, Portugal, Malta, Grenada, US and UK offer residency/citizenship-by investment schemes, requiring differing minimum levels of investment and qualification tests. The development of such a “golden visa” market has seen the rise of industry-wide groups such as the Investment Migration Council, the Geneva-headquartered organisation pushing for best practice around such schemes. IMC has locked horns with purveyors of such visas in Hungary, following criticisms IMC made of that country’s regime. IMC said the Hungarian system had no obvious benefit for the country’s economy.

A recent conference hosted by the Society of Trust and Estate Practitioners, in Switzerland, featured a debate about such visa programmes in which the arguments for these systems was called into question.