BASSETERRE, St. Kitts – FORMER Government Minister Dwyer Astaphan is also questioning the transparency and reliability of the Federation's Citizenship by Investment (CBI) Programme with regards to the Advisory issued by the United States' Financial Crimes Enforcement Network (FinCEN) and the Prime Minister's response.
On Tuesday (May 20), FinCEN issued an Advisory alerting financial institutions that the St. Kitts-Nevis CBI Programme was being abused by foreign individuals who were engaging in illicit financial activity.
Prime Minister the Rt. Hon. Dr. Denzil Douglas however told members of the local press yesterday (May 21) at his Monthly Press Conference that changes were going to be made to the CBI Programme to better protect it from such individuals.
Astaphan, in giving his comments on the matter, told this publication that there were many "questionable characters" that held the nation's passport and that there were questions the Prime Minister needed to answer, which included how those people managed to earn passports even after going through due diligence.
"If he is claiming that no passports were issued to Iranians since the ban was placed, all he has to do is share with the US Treasury Department and the other members of the international community who are concerned with what is happening so he can confirm in their mind that the record is clear," he said.
Astaphan mentioned the names of a number of persons he claimed are holders of St. Kitts-Nevis passports, but who are on the US Treasury’s list, wanted for major crimes or are "questionable characters", adding that the local government should have revoked their passports.
He also claimed that some of these people hold diplomatic passports which should not have been sold to them.
"The point is, whenever it is these people got passports, all of these passports should have been immediately revoked. And if they were not revoked, then somebody has to ask a question," Astaphan said.
He however emphasised that the major question is how the people managed to get passports in the first instance.
"We have a due diligence process and it is said that the people who are engaged to do the due diligence for the government are reputable international firms and I have no doubt that that is the case. But if you have replicable firms doing due diligence, it is going to be very difficult for a scamp to get through the due diligence net? So, how do these scamps get passports?
Astaphan also questioned the Dubai Embassy’s operations, noting that "we are informed that people can go to a certain office in Dubai and get a St. Kitts-Nevis passport for $100 000".
"So who is monitoring the whole system of issuing passports? And every citizenship certificate has to be signed by the Prime Minister! The county needs to know, just like the Americans and the Europeans want to know. There is not enough transparency," he emphasised.
He also emphasised that there are transparency issues with the CBI Programme, in that the public is not being told much and questions are not being answered.
The former Labour Party Member of Parliament said the CBI Programme is fighting with transparency issues and has now put the Federation in jeopardy in being under the US Treasury Department Advisory.
With regards to possible ramifications, Astaphan said it is extremely serious by the mere fact that there is an Advisory in place.
"It does not mean every financial transaction is a criminal one or one intended to launder money or further terrorism, or stuff like that, but the fact that there is an Advisory in place is an extremely serious thing. It is going to put eyes on us in the wrong way and it is going to take up a lot more time for people. Time that could have been spent doing more positive and productive things."
Astaphan said the Prime Minister needs to answer the questions of who the people are that hold the Federation's passports, including those holding diplomatic passports, how they came into possession of them and what is happening in the Dubai embassy and "all over".
He said that the Prime Minister is not known for speaking the truth and so what he said at his Monthly Press Conference yesterday holds no weight.
