St Kitts and Nevis: Prime Minister Dr Terrance Drew praised the leaders of Antigua and Barbuda, Dominica and Grenada for coming together with the Federation of St Kitts and Nevis and executing the historic Memorandum of Agreement to strengthen the Citizenship by Investment (CBI) Programmes in Organisation of Eastern Caribbean States (OECS) Member States.
Being the current Chairman of the OECS, PM Drew has initiated the partnership and assured the international community that the group of four OECS Member States will exchange the best practices, due diligence processes and intelligence related to potential security or compliance risks along with operating the CBI Programmes.
Considerably, the purpose of the Memorandum of Agreement is to provide a framework for cooperation and share information among the four OECS member States in relation to their CBI Programmes.
The Memorandum of Agreement signed on Wednesday, March 20, 2024 makes the four nations agree on sharing information on CBI Programmes applicants.
The agreement implements the enhanced transparency measures that will include the disclosure of funds which will be received by CBI Programmes. Involving the disclosure of use of the proceeds of CBIs and to conduct independent financial and operational audits to assess CBIs compliance with best practice standards.
The agreement will also assign or establishes a regional competent authority to set standards in accordance with international requirements and best practices and to regulate the CBI Programmes.
It has been signed to establish common standards to manage the communications and promotion and for the regulation of the agents operating in the CBI Programmes.
It will facilitate joint training sessions and capacity building initiatives for the respective officials and agencies involved in the administration of CBI Programmes.
The Prime Minister of St Kitts and Nevis, Dr Terrance Drew stated that the four small island developing states who signed the Memorandum have committed to increase and harmonize the minimum investment threshold of the CBI Programmes to an investment sum of at least US $200,000, notably not after June 30, 2024.
“More importantly they are dedicated to bring an end to ‘underselling’, a scourge on the CBI Industry in the recent past,” said PM Drew.
He also mentioned, “We have therefore agreed that the minimum investment thresholds for the CBI Programmes shall represent the actual amount of funds received and applied towards an applicant’s qualification under the respective CBI Programmes. It does not consider the gross amount of funds paid by an applicant from which deductions include the payment of commissions that are made.”
Adding to his statement Prime Minister Drew said, “I commend my fellow Prime Ministers for recognizing that CBI Programmes are too important to the respective economies to act irresponsibly in the operations.”
“The move will show the world that the four nations are responsible and serious about operating investment migration programmes that respect the rule of law and are sustainable and do not offend the interests of the officials in the international community,” said PM Drew.
The Memorandum of Agreement introduces six principles that were agreed between all CBI Programmes operating OECS Member States and the United States last year in March.
St Kitts and Nevis has been operating the CBI Programme since 1984 and has made it a significant advancement to its CBI Programme Regulations in December 2022 and July 2023.
The CBI Programmes in the OECS were the target of International Scrutiny between 2017 and 2022 during which there was a ‘race to the bottom’ with respect to investment options.
Recalling the tenure increased by Prime Minister Drew, in less than a year by July 2023, with the minimum investment option of the St Kitts and Nevis CBI Programme to US $250,000 ‘Underselling’ was eliminated and numerous other good governance structures were implemented. The measures taken were commended by International Partners and CBI Programme stakeholders.
