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Four OECS nations sign landmark agreement to enhance CBI programmes

The agreement aims to address concerns regarding 'underselling,' which has been a challenge in the CBI industry in recent years

In a landmark move, four out of the five OECS jurisdictions offering Citizenship by Investment Programmes have collaborated to sign a Memorandum of Understanding (MoU), agreeing to increase the minimum investment threshold to $200,000, share the information of applicants, and establish a regional competent authority to set standards among several other provisions.

According to official reports, Antigua and Barbuda, Dominica, Grenada, and St Kitts and Nevis signed the MoU, committing to the increase no later than June 30. The agreement aims to address concerns regarding 'underselling,' which has been a challenge in the CBI industry in recent years.

This move follows a period of intense competition within the citizenship by investment programmes in OECS between 2017 and 2022. This competition, often characterised as a 'race to the bottom', witnessed some countries offering increasingly relaxed investment options. However, the new MoU signals a shift towards stricter regulations and collaboration, potentially addressing concerns raised during scrutiny.

The MOU encompasses a range of commitments aimed at enhancing the integrity and effectiveness of CBIPs, including:

Notably, the new Memorandum of Agreement builds upon the six principles established in March 2023, which were jointly agreed upon by all OECS Member States operating Citizenship by Investment Programmes during roundtable discussions with the US.

Dr Terrance Drew, Prime Minister of St Kitts and Nevis and Chairman of the OECS, highlighted that this collaboration will facilitate the exchange of best practices, enhance due diligence processes, and enable sharing intelligence on potential security or compliance risks.

“I commend my fellow Prime Ministers for recognising that CBIPs are too important to our respective economies to act irresponsibly in their operations. This move will show the world that our four nations are responsible and serious about operating investment migration programmes that respect the rule of law, are sustainable and do not offend the interests of our brothers and sisters in the international community,” said Dr Drew.

He also emphasised that the purpose of the Memorandum of Agreement is to provide a framework for cooperation and information sharing among the four OECS Member States in relation to their CBIPs.

As the Caribbean nations move forward with implementing these measures, the agreement marks a significant milestone in the evolution of their CBIPs. By prioritising transparency and cooperation, they aim to bolster investor confidence and solidify their positions as reputable destinations for citizenship through investment.

— Scott Johnson is the financial expert at AT & Associates.