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St Kitts & Nevis looking to make major changes to its citizenship by investment program
The government of St Kitts & Nevis has accepted the recommendations of an international risk management firm – IPSA International Inc., to implement reforms in its citizenship by investment (CBI) program, bolstering security aspects and increasing attractiveness to investors.
At a press conference earlier this week, Prime Minister Timothy Harris said that the services of the risk management firm were secured in the last quarter of 2014 by the previous administration to make an independent comprehensive evaluation of the citizenship by investment program.
The review was inspired by serious concerns raised by foreign governments, which subsequently led to the imposition of visas on St Kitts & Nevis citizens traveling to some countries including Canada.
“The then government by and large had gotten in an election mode and had paid very little attention to IPSA’s recommendation,” Harris revealed. “I can say today that this government has reviewed the report and after consultations with a wide cross section of persons representing developers, agents, service providers, lawyers, ordinary citizens and workers, we have decided that it is in the best interest of our country that we implement the 20 recommendations proposed by IPSA International.”
Among the recommendations that have been accepted is the implementation of a case management tool to streamline the application management process within the citizenship by investment unit; changes to the unit’s organizational structure to enhance processing capabilities and mitigate risk; an improved risk assessment process; and a review of previously approved applicants.
“These will form the basis to restructure reform and reposition the CBI programme and unit in particular to restore it to its former glory,” Harris emphasized. “Not just to become known as a program which is the oldest, but a program which is the best and which will become a leader in best practices in similar programs.”
IPSA will be working closely with the government in these areas. These measures are expected to promote greater transparency and efficiency in the work at the citizenship by investment unit.
The world’s oldest citizenship program, and for years regarded as the best program of its kind, was dealt a heavy blow to its reputation when Iranian sanctions evaders began showing up all over the world with St Kitts & Nevis passports. Some even carried diplomatic passports. This created concern on the part of US and Canadian authorities, among others.
In particular, the arrival of an Iranian in Canada with a St Kitts & Nevis diplomatic passport for which he claimed to have paid EC$ 1 million (US$370,370) resulted in outrage locally, and in advisories from foreign countries. Some months later, the Canadian government put an end to the visa-free access that had been previously enjoyed for decades by St Kitts & Nevis passport holders entering Canada.
Harris acknowledged that there had been damage done to the reputation of the program due to its less than appropriate management by the former administration. In giving his guarantee of improvements to the program, Harris outlined:
