Remarks delivered by Prime Minister Dr. the Hon. Timothy Harris International Citizenship and Global Residence Conference Mayfair, London 7th July 2015
Distinguished Colleagues, Excellencies, Ladies and Gentlemen:
I am delighted to be here in London today, and to see so much interest in the St Kitts & Nevis Citizenship-by-Investment programme. London is a city that has always welcomed immigration, and appreciated a long time ago how new residents and fresh investment can transform a place. It has certainly changed dramatically since I first came here about 20 years ago. Walking the streets of London this week, I heard many different languages on every corner: Russian, Chinese, Arabic, French and countless more including people with Canadian and American accents. These are reflective of the people we are attracting to become citizens of St Kitts & Nevis.
Citizenship-by-Investment programmes have been in the news this week. First, there was a piece in The Economist called “Tickets to Paradise and Beyond.” It said that: Travel papers from tiny islands help all sorts of folk reach bigger places. Its conclusion was largely positive on our programme. It spoke in part to our efforts to work more closely with our Caribbean neighbours who have similar programmes. There was also an article in the Financial Times. In a profile of Pavel Durov, a Russian who is known as that country’s Mark Zuckerberg, the founder of Facebook, it stated that Durov travels on a St Kitts & Nevis passport. We are delighted that his investment in St Kitts & Nevis, and his citizenship is both benefitting him, and us.
Our country and those of my neighbours require investment. Tourism is all very well, but it can be fickle and it is not without its challenges. Imagine the jobs that somebody like Pavel Durov could create. We should be open to the possibilities of hi-tech investment. Moreover, as any sensible investor knows, a diversified portfolio is the safest.
It is refreshing to finally see some good press about Citizenship-by-Investment, because in the past year or so, much of the publicity has been negative. When I assumed office after fresh general elections in February 2015, we faced two major challenges. First, the United States Government was pressing us to prove our programme did not encourage tax evasion. Second, the Canadian Government had recently imposed visa restrictions on any of our citizens wishing to visit that country.
Not only was our relationship with those two countries in jeopardy, but so was the very existence of our programme. I spent the first few months forging closer links with both of those Governments, as well as with the British, the European Union, and multilateral agencies such as the IMF. The IMF did at least recognise the importance of the programme to our economy. In its last press release on St. Kitts Nevis dated June 19, 2015, the IMF welcomed the efforts of my Team Unity Administration to reform our Citizenship-by-Investment Programme.
I decided to reset the programme, and assumed full responsibility for its success and good governance. First step was to accept the 20 recommendations that had been made by IPSA, an international consultancy, on the different ways that we could strengthen the programme. This included such measures as establishing a Commission for the oversight of the Citizenship-by-Investment Programme; reviewing the regulations for the establishment of escrow accounts and amending the policies accordingly, as well as conducting periodic reviews of approved applicants thereafter.
I also felt there was need for greater regional co-operation. We know that other Caribbean countries such as Antigua and Barbuda, Dominica and Grenada are either starting or considering their own programmes, and I welcome the growth of this industry. But as we saw when Lehmann Brothers Investment Bank collapsed in 2008, the contagion effect of such an occurrence can be catastrophic for an industry. It was only with massive Government intervention on a global scale that the banking industry survived. It would be of no benefit for us to watch another country offering citizenship programmes run into difficulties.
Saint Kitts and Nevis leads on best practices
Four weeks ago, St. Kitts and Nevis hosted the first ever regional Citizenship by Investment and Due Diligence Conference, organised by IPSA. It focused on gathering fellow Caribbean jurisdictions to work together to establish common standards, codes of practice, to setup common regulatory frameworks as part of an initiative to promote greater transparency, better corporate governance and integrity in all our programmes.
Representatives from the governments of Canada, the United States, the EU and the United Kingdom were present also, and declared that this was an important step in the right direction.
I have emphasized many times since assuming office - and I am very open about this - that St. Kitts & Nevis is fully committed to working strategically with our partners and friends to strengthen its CBI programme and to address any concerns that they might have about the programme.
At the same time, my government is unapologetic in supporting our programme for the simple reason that its defining ethos and the benefits derived over the years demonstrate that this programme is a remarkable tool for development.
The St. Kitts & Nevis programme is an excellent product. More importantly, it is an enormously invaluable vehicle for promoting national development and economic resilience. The IMF reports that St Kitts & Nevis has the strongest growth in the region, averaging about six per cent annually for 2013 and 2014. Growth is projected at 4.5 per cent for 2015. We want to continue on this given trajectory, ensuring that the construction boom is sustained and the economy expands.
We will be relentless in our strategy and efforts to ensure that our programme represents the best of our country, its values, aspirations and international obligations. We understand and are ready to promote genuine and sustainable opportunities for our citizens. But more importantly, we are taking necessary action to prevent anyone from using our programme unlawfully or in any way that could undermine the security of St. Kitts & Nevis as well as its friends and partners.
It is imperative for me to say to you that yes, I hear and acknowledge the complaints being voiced about the unfortunate delays in the processing of some applications. My government regrets this, but a review and recalibration of the programme were absolutely necessary in order to enhance and preserve the integrity of the programme. As Prime Minister, it troubled me that the country which had pioneered this space three decades earlier could find itself being characterised as having lax controls and being open to abuse. We could not continue as if all were well, burying our heads in the sand. We paused, we took stock and we are now moving ahead.
Because this programme is so relevant to the national economy, we determined that it was more important to improve its management and oversight. We wanted to be sure that the tools available to scrutinize and monitor applicants and new citizens were being refreshed and are fit for purpose.
You will be pleased to know that we have brought amendments to the Citizenship Bill for a first reading in Parliament. And we have hired IPSA International - an internationally respected risk management firm and provider of due diligence services - to ensure that their recommendations are being carried out.
Let me allay any fears you might have had. The reform process to which I referred is bearing fruit. As a consequence, we are now better prepared administratively and legally to deliver a better quality programme. I want all of you to know that the St. Kitts & Nevis programme remains ready and open for business. This is serious business. We take it seriously and yes, we mean business.
We promise to revoke the citizenship of any person who uses his or her passport for fraudulent purposes; commits an act of terrorism or appears on any international sanctions. And, where necessary, we are prepared to act retroactively.
You can trust our Citizenship Programme
I am sure you will appreciate why these steps are important. They are important because our programmes deal in trust. Their endurance and viability rise and fall on trust. But trust takes time to build. Yet, it can be lost in an instant. When trust is squandered or eroded, regaining it can be hard.
Let me add that the trust to which I refer cuts both ways. For instance, for governments, it is incumbent upon us to put in place the best regulatory frameworks and systems to ensure efficiency and reliability in our processes; the mechanisms to facilitate investment and business development, and indeed to instill trust in our ability to deliver.
But it is equally incumbent on the service providers, lawyers, accountants, investment advisors, property developers and agents to abide by codes of conduct and transparent practices; to subscribe to common high standards and definitely, trust. Our relationship should be mutually reinforcing.
While you must be able to trust governments to deliver the best products and services in a reliable time frame, governments must know that they can trust you to abide by the requirements of their programmes and to select the most suitable applicants as required by a particular programme. I know that you are in a very competitive market, but we can’t afford shortcuts or to shy away from competition - proper and due diligence, like competition is good for the marketplace.
Only the best for Saint Kitts and Nevis
One of the takeaways for you from this presentation is that St. Kitts & Nevis is not interested in reaching the lowest common denominator. We want only the best and most suitable candidates who can appreciate our goal of coupling citizenship with the pursuit of genuine business opportunities as part of our development thrust. We want developments such as the Park Hyatt St Kitts, Koi Resorts, Embassy Suites by Hilton, etc., that create jobs while under construction, and will provide jobs for many years into the future once open.
St. Kitts & Nevis will seek out partners willing to work with us to promote greater transparency, good corporate governance, greater due diligence, efficiency, accountability, integrity and exclusivity. And in this important task, we will work with our fellow Caribbean countries to build the best programmes globally.
Conclusion
In conclusion, ladies and gentlemen, I want you to understand that the review we undertook was absolutely necessary. Inadvertently, it has led to some regrettable delays. At that point in time, it was judged to be more important to be right and transparent than to be fast. Now we are working to do both.
Unquestionably, as Prime Minister, I am committed to the credibility of our programme. But I know that credibility also means ensuring that people have the confidence that when we say we will deliver in a certain period, we deliver every single time. For us to deliver on time, service providers must do their work diligently, paying attention to detail and the requirements of the law and good practice and to answer all queries on time, etc.
St. Kitts & Nevis recommits itself to running the best CBI programme; one distinguished for its efficiency as well as its integrity. And to this end, we are upgrading several elements of our Citizenship Investment Unit, providing new technology and training for its staff. With your support, we will continue to be a preferred destination for investment.
I would encourage as many of you as possible to promote and support the St. Kitts & Nevis Citizenship-by-Investment Programme.
Finally, let me express thanks to the organizers, CS Global Partners, its partners and sponsors for allowing me this opportunity to highlight our programme and the benefits of global citizenship. The world really belongs to all of us. Let’s cherish the opportunity to belong. St. Kitts and Nevis with its peace, beauty, tranquility, rich heritage and textured history beckons you to be part of our progressive country on the path of progress and development.
Thank you.
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