US-Caribbean Roundtable sets six CBI principles, suspends Russian applications for Grenada

On 25 February 2023, a historic US-Caribbean Roundtable on Citizenship by Investment was held in Saint Christopher (St Kitts) and Nevis. The highly productive and mutually beneficial engagement involved delegations of the five Eastern Caribbean states with Citizenship by Investment (CBI) Programs led by their Prime Ministers and a delegation of the Government of the United States led by the Deputy Assistant Secretary of the US Department of the Treasury. Also in attendance were the Governor of the Eastern Caribbean Central Bank and the Director General of the Organization of Eastern Caribbean States.

 

Both parties discussed the threats and challenges these programs face and the important contribution they have made to national development in these small states.

 

The US recognized that the CBI Programs provide a legitimate service and have assisted in the survival of the participating economies by providing revenues, particularly considering the existential threat to our vulnerable small island states – emanating from the climate emergency – and the onslaught of recent adverse external shocks, including the ongoing war in Ukraine.  CBI revenues are invaluable for funding major infrastructural and development projects and building resilience.

 

It was accepted that dismantling these Programs would severely compromise the prosperity and prospects of the countries, triggering a plethora of negative social consequences domestically and potentially leading to an upsurge in criminality, among other pathologies.

 

Both parties affirmed their commitment to a collective fight to safeguard their respective financial systems against threats posed by illicit actors.

 

The five Governments collectively committed to six CBI principles proposed by the US, several of which had previously been proactively adopted by the OECS states of their own volition as part of their risk management framework to strengthen and safeguard the integrity of their CBI Programs.

 

The six principles agreed to are the following:

 

  1. Collective agreement on the treatment of denials: Not to process applications from persons whose applications have been denied in another CBI jurisdiction, by proactively sharing information on denials.
  2. Interviews: Conduct interviews with applicants, whether virtual or in-person.
  3. Additional checks: Each jurisdiction will run checks on each application with the Financial Intelligence Unit of its respective country.
  4. Audits: Audit the Program annually or every two years in accordance with internationally accepted standards.
  5. Retrieval of passports: Request law enforcement assistance to retrieve revoked/recalled passports.
  6. Treatment of Russians and Belarusians: Suspend processing applications from Russians and Belarusians. Four jurisdictions have already suspended applications and Grenada which processes applications from Russians and Belarusians with enhanced due diligence will suspend processing new applications from Russia and Belarus from March 31, 2023.

It was recognized and accepted that the implementation of this measure has and will continue to have a significant adverse revenue impact on the CBI states.

Both Parties also agreed to convene a technical discussion within the next four to six months to assess the status of implementation of the agreed six principles.  Additionally, at this next engagement, the OECS States requested further discussion on the US Government’s risk management framework for the EB-5 Immigrant Investor Program as it relates to processing applications from Russians.

Given these agreements, the CBI States requested that the US Government facilitate a similar engagement with the European and United Kingdom Governments based on the six agreed principles. Both Parties reiterated their commitment to ongoing constructive engagement that takes account of the special circumstances of small states and their needs.

Attending this meeting was:

 

Antigua and Barbuda

Prime Minister Hon. Gaston Browne

Head of CIP Unit, Mrs. Charmaine Donovan

 

Commonwealth of Dominica

Prime Minister Hon. Roosevelt Skerrit

Deputy Prime Minister, Hon. Dr. Irving McIntyre

Financial Secretary, Ms. Denise Edwards

Head of CBI Unit, Ambassador Emmanuel Nanthan

 

Grenada

Prime Minister Hon. Dickon Mitchell

Chairman, CBI Committee Mr. Richard Duncan (via Zoom)

 

St Kitts and Nevis

Prime Minister Hon. Dr. Terrance Drew

Head of CBI Unit, Mr. Michael Martin

 

Saint Lucia

Prime Minister Hon. Philip J. Pierre

Minister in the Ministry of Finance, Hon. Wayne Girard

Permanent Secretary of Finance, Mr. Francis Fontenelle

Chairperson CIP Board, Mr. Lorne Theophilus

CEO CIP Board, Mr. Claude Emmanuel

 

Eastern Caribbean Central Bank

Governor Timothy Antoine

Dr. Emefa Sewordor

 

Organisation of Eastern Caribbean States

Director General Dr. Didacus Jules

United States

Deputy Assistant Secretary, US Department of Treasury Ms Anna Morris

Director, Office of Terrorist Financing and Financial Crimes, Ms. Sandra Garcia

Senior Policy Advisor, Office of Terrorist Financing and Financial Crimes, Ms. Crina Ebanks

Deputy Director, Office of Global Sanctions and Threat Finance, U.S. Department of State, Ms. Angel Ventling

Deputy Chief of Mission, U.S. Embassy, Barbados, Mr. David Schnier

(press release)