Reported by SKNIS: Basseterre, St Kitts, on March 22, 2024, the Honourable Prime Minister, Dr. Terrance Drew, expressed appreciation towards the leaders of Antigua & Barbuda, the Commonwealth of Dominica, and Grenada for collaborating with the Federation of St Kitts and Nevis in signing a historic Memorandum of Agreement. This agreement aims to enhance the Citizenship By Investment Programmes (CBIPs) in those OECS Member States.
As per SKNIS, Prime Minister Drew, who currently serves as Chairman of the OECS, spearheaded this initiative. It aims to affirm to the international community the commitment of these four OECS Member States operating CBIPs to exchange best practices, enhance due diligence processes, and share intelligence regarding potential security or compliance risks. The Memorandum of Agreement serves as a formal structure for cooperation and information exchange among these four OECS Member States concerning their CBIPs.
Prime Minister Dr. Drew emphasized that the four small island developing states involved in signing the Memorandum have made a commitment to raise and standardize the minimum investment threshold of their Citizenship By Investment Programs (CBIPs) to a minimum investment amount of US$200,000 by no later than June 30, 2024. Furthermore, they have collectively agreed to eradicate the practice of ‘underselling,’ which has been detrimental to the integrity of the CBI Industry in recent times. Prime Minister Dr. Drew stressed that the minimum investment thresholds for their CBIPs will now accurately reflect the actual funds received and utilized for an applicant’s qualification, rather than the gross amount paid by the applicant, from which deductions, including commissions, are deducted, according to SKNIS.
Prime Minister Dr. Drew commended his fellow Prime Ministers for acknowledging the importance of CBIPs to their respective economies and for their commitment to responsible operation. He stated that this initiative will demonstrate to the global community that the four nations are committed to operating investment migration programs that uphold the rule of law, ensure sustainability, and do not compromise the interests of the international community.
As stated by SKNIS, the Memorandum of Agreement, dated March 20, 2024, outlines additional agreements among the four nations, including:
- Sharing information regarding Citizenship By Investment Program (CBIP) applicants.
- Implementing enhanced transparency measures, such as disclosing funds received by CBIPs and their use, as well as conducting independent financial and operational audits to assess compliance with best practice standards.
- Assigning or establishing a regional competent authority to set standards in alignment with international requirements and best practices, and to regulate CBIPs.
- Establishing common standards for managing communication and promotion of CBIPs.
- Implementing common standards for regulating agents operating within CBIPs.
- Facilitating joint training programs and capacity-building initiatives for officials and agencies involved in CBIP administration across the respective nations.
Following the reasearch of SKNIS, the Memorandum of Agreement complements the six principles previously agreed upon by all Citizenship By Investment Program (CBIP) operating OECS Member States and the United States of America in March 2023. Notably, the Federation of St Kitts and Nevis, which has maintained a CBIP since 1984, introduced significant enhancements to its CBIP Regulations in December 2022 and July 2023.
In accordance with SKNIS, between 2017 and 2022, Citizenship By Investment Programs (CBIPs) in the OECS faced international scrutiny, marked by a trend toward decreasing investment thresholds, known as a ‘race to the bottom.’ However, by July 2023, Prime Minister Drew led substantial reforms within the St Kitts and Nevis CBIP. These reforms involved elevating the minimum investment requirement to US$250,000, eradicating ‘underselling,’ and implementing diverse governance frameworks to promote transparency and accountability. These initiatives have garnered praise from both international partners and stakeholders within the CBIP sector.
