Four of the five members of the Organisation of Eastern Caribbean States (OECS) that provide Citizenship by Investment (CBI) Programmes have entered into a Memorandum of Agreement (MoA). These countries include Antigua and Barbuda, Dominica, Grenada, and St. Kitts and Nevis. One of the key changes outlined in this agreement is the introduction of a new minimum threshold for CBI Programmes in the Caribbean. We examine the reason for the impending price increases.
The New Standardised Minimum Investments
The establishment of a minimum investment threshold of US$200,000, is set to be enforced no later than June 30, 2024.
Why a Minimum Investment Threshold?
The aim is to create a unified standard that harmonises investment levels across the board, fostering consistency and transparency for prospective applicants.
The decision to set a minimum investment threshold marks a pivotal moment in the evolution of CBI Programmes in the Caribbean region.
Historically, each nation operated with varying investment requirements. This led to disparities in the financial commitments expected from applicants. Subsequently, the lack of uniformity resulted in a pricing war and an industry ‘race to the bottom’. Not only did this create confusion among investors when comparing programmes; it further raised concerns regarding the credibility of the programmes.
With the new minimum investment threshold in place, the participating nations are taking a proactive step towards streamlining their CBI offerings and aligning them with international best practices.
Benefits of a Standardised Minimum Threshold
The establishment of a standardised minimum investment threshold is expected to bring about several key benefits for both the nations involved and the investors.
Transparency
A standardised minimum threshold enhances the transparency and credibility of the CBI Programmes, instilling confidence in applicants regarding the integrity and rigor of the investment process.
By setting a clear financial benchmark, nations demonstrate their commitment to upholding high standards of due diligence and accountability in the management of investor funds.
A level playing field for all
Moreover, the minimum investment threshold serves as a valuable tool for promoting investor protection and ensuring that applicants receive fair and equitable treatment across all participating countries.
By creating a level playing field in terms of investment requirements, the MoA aims to eliminate potential discrepancies that could arise from varying financial criteria, thus fostering a more equitable and harmonised CBI landscape in the Caribbean region.
Other crucial agreements outlined in the MoA include:
- Exchange of best practices and due diligence processes
- Information sharing on applicants
- Enhanced transparency measures
- Independent audits
- Creation of regional authority
- Adoption of common standards
- Regulation of agents
- Implementation of joint training Programmes
