BASSETERRE, St. Kitts - EVEN as the European Union and the US Government placed the Citizenship By Investment programmes across the region and internationally under the microscope, regional leaders are seeking to stop any legislative changes that might affect the programmes.
Currently, that programme is seen as one of the major sources of revenue for the Government in Basseterre and across the Organisation of Eastern Caribbean States (OECS). And any changes could impact an already fledgling economic recovery from the shocks of the global pandemic.
The European Union recently sought to implement a similar programme in Europe under one umbrella, such as its “residence by investment”. But they have a concern that Russians and other illicit actors might be falling through the cracks of the regional programme.
Prime Minister Dr. Timothy Harris, in a recent media interview, noted that for the longest while the EU had issues with certain programmes, pointing to Vanuatu’s programme as a case. The South Pacific island nation was flagged because its programme allegedly lacked the rigorous due diligence expected for a CBI programme.
And according to Prime Minister Harris, due to the robust screening, there is no concern for the local programme at the moment.
“There has been a lot of information and misinformation regarding that. And the world is changing and we have seen what the war in Ukraine has occasioned. However, from our own monitoring of the system, we believe that once we continue to assure the critical stakeholders that we have the most robust due diligence in the world, then our programme will continue to endure for sometime,” explained Harris.
Despite that assurance, the regional programme is being given an ultimatum to be scrapped or have passport holders face visa imposition for entry into the Schengen Zone and other EU member states.
In the case of St. Kitts and Nevis, there are more than 160 countries to which passport holders can travel without having to produce a visa, including a number of European countries.
That has made the local CBI programme very lucrative and one of the most sought after passports in the world.
For 2021, the Government raked in US$588 million under the programme. And Dr. Harris is of the view that the only way the situation could be resolved is if all territories and countries offering the programme approach the problem jointly.
“I think collectively we have to organise, and we called it early. In the term of this administration we had convened a consultation…And in that consultation I had made an appeal, you may recall, for all islands participating in the programme to come together to have common policies and common strategies: because in the end they will see us as one block and it is hard to differentiate,” reminded Harris.
Even though there are rigorous measures in place, the Prime Minister acknowledged that there is still more work to be done and the OECS Commission and the Eastern Caribbean Central Bank were mandated by Heads of the Authority to coordinate a response.
Antigua and Barbuda’s Prime Minister, Gaston Browne has already written to the EU officials voicing his displeasure at moves being suggested.
The arbitrary withdrawal of the programme will have ripple effects across the region, as 10 percent of Antigua Government’s revenue is from the programme.
In Basseterre, between 20-40 percent of the Government’s revenue is made from the Citizenship By Investment Programme.
Dr. Harris believes that despite the programme only being available in OECS territories, member states of CARICOM should join together to have a unified voice against the position being taken by the United States and the European Union.
“There is some sense of influence in numbers! Singularly, we as small island states hardly have any significance, but when you move you can achieve more,” noted PM Harris in part when responding to an SKNVibes question on lobbying under the CARICOM umbrella owing to the possible trickle down effect from changes to CBI programes.
The United States House of Representatives is also considering passing legislation that could deal a major blow to the region’s economy that is still recovering from natural disasters, the global financial crisis of 2008 and the COVID-19 pandemic.
Now, with all of the territories in the region expected to be impacted, what assistance will these islands be provided by those seeking to block the sale of passports that will not put them into further economic debt?
