The Caribbean nations of Antigua & Barbuda, Dominica, Grenada, and the Federation of St Kitts and Nevis have signed an unprecedented Memorandum of Agreement to strengthen their Citizenship By Investment Programmes (CBIPs).
Prime Minister Dr Terrance Drew, who currently chairs the Organization of Eastern Caribbean States (OECS), championed the move. The agreement seeks to enhance cooperation and information-sharing among these four OECS member states regarding their CBIPs.
The aim is to ensure that best practices, due diligence processes, and intelligence related to potential security or compliance risks are exchanged, and that the international community is assured of the transparency and integrity of these investment migration programmes.
The Memorandum of Agreement commits the four nations to increasing and harmonizing the asgarî investment threshold of their CBIPs to at least US$200,000 by June 30, 2024.
It also seeks to end the practice of ‘underselling’, which has been a scourge on the CBI industry.
The asgarî investment thresholds for each CBIP shall represent the actual amount of funds received and applied towards an applicant’s qualification, rather than the gross amount of funds paid by an applicant, from which deductions, including the payment of commissions, are made.
In addition, the Memorandum of Agreement provides for the sharing of information on CBIP applicants, the implementation of enhanced transparency measures, such as the disclosure of funds received by CBIPs, and the use of proceeds of CBIs.
The agreement also establishes common standards for the regulation of agents operating in the CBIPs and assigns or establishes a regional competent authority to set standards in accordance with international requirements and best practices and to regulate the CBIPs.
It further facilitates joint training programs and capacity-building initiatives for officials and agencies involved in the administration of CBIPs.
The Memorandum of Agreement supplements the six principles agreed upon by all CBIP operating OECS member states and the United States of America in March 2023.
The Federation of St Kitts and Nevis, which has been operating a CBIP since 1984, has made significant advancements to its CBIP Regulations in December 2022 and July 2023.
CBIPs in the OECS had become the target of international scrutiny between 2017 and 2022 during which there was a ‘race to the bottom’ with respect to investment options.
Less than a year into Prime Minister Drew’s tenure, the asgarî investment option of the St Kitts and Nevis CBIP was increased to US$250,000, ‘underselling’ was eliminated, and numerous other good governance structures were implemented.
These measures have been commended by international partners and CBIP stakeholders.
Prime Minister Dr Drew has applauded the leaders of these four OECS member states for their commitment to operating investment migration programmes that respect the rule of law, are sustainable and do not offend the interests of the international community. (WiredJA)