'Greatest scam for laundering money in history': Ex-Obama official blasts new Trump scheme

President Donald Trump's new plan to let foreigners gain citizenship if they buy a $5 million gold card was compared to a money laundering scheme by a former Obama administration official Wednesday.

Rick Stengel, who served as undersecretary of State for Public Diplomacy and Public Affairs, joined MSNBC's Nicolle Wallace on "Deadline: White House."

Stengel raised the issue of the EB-5 Immigrant Investor Program during a discussion on President Donald Trump's immigration policy.

"We've done a terrible job of explaining what this legislation is. This gold card — it's maybe the greatest scam for laundering money that's ever been in human history," he said. "Selling the highest office in a democracy, which is citizenship as the justice said, for this price."

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The EB-5 program gives foreigners between $500,000 and $1 million to start a business in areas that are poor and don't have enough housing. The businesses employ about 10 people.

"Wow! Isn't that smart?" he exclaimed. "That is the best example of how legislation works."

Trump's plan, he said, represents "the worst example of how legislation works."

Molly Jong-Fast chimed in that other countries have similar visa programs, including Ireland, where foreigners can put money into a bank account or investment.

"There's a reason why Trump thinks it's such a good idea," she said, adding: "We see this a lot where they're like rediscovering legislation or they're like, you know, 'What about if we do this' and it's like, 'Well that actually already exists but a little bit better.' They're learning how the government works in real time."

Wallace pointed out a critical difference between EB-5 and Trump's plan: One exists to bring people to the U.S. to employ people and bring a "uniquely American product or experience."

"It doesn't exist for Russian oligarchs, which is what he was talking about in the Oval Office," said Wallace.

Stengel said both can be done, but that it's "much better" to create a program that benefits Americans rather than peoples' bank accounts.

The Gold Card is proposed to launch within two weeks without congressional approval. The EB-5 program was established by Congress and requires legislative changes.

Watch the clip below or at this link.