Investment Migration for as Little as $100,000 Threatened by Crime Crackdown
An IMGW News Report
Citizenship and Residency
In recent years, Investment Migration (IM) programs, often dubbed as ‘golden passports’, have faced increasing scrutiny. However, several small Caribbean nations are fervently advocating for their continuation, stressing their crucial role in economic survival.
“Cracking down on IM holders could devastate these small island economies, which rely on this revenue for infrastructure projects and welfare programmes. Tourism, though immensely attractive, is limited due to the region’s geographical isolation. Agriculture, including crops like sugar cane and bananas, cannot compete with larger Latin American and global producers.”
For five Caribbean countries—Saint Kitts and Nevis, Dominica, Saint Lucia, Grenada, and Antigua and Barbuda—citizenship by investment (CBI) programmes generate a substantial $579 million annually, according to Bloomberg. These nations, with their limited ability to develop sustainable local economies, heavily depend on these programmes to stay afloat. They are urging the European Union to recognise how vital these programmes are.
“Our national economic prosperity hinges on the robustness of our citizenship-by-investment programme,” stated Terrance Drew, Prime Minister of Saint Kitts, in December. “This program must be protected at all costs.”
In Saint Kitts and Nevis, the CBI program was projected to contribute $192 million in 2023, comprising more than half of the country’s revenue. Here, citizenship is priced at $250,000, offering tax breaks and visa-free travel. Dominica has a similar price, while Grenada charges $150,000, and Saint Lucia and Antigua and Barbuda set the cost at $100,000.
Overall, the five nations have granted citizenship to at least 88,000 individuals, many from China, Russia, Nigeria, and other countries that typically require travel permits. This has raised EU and US concerns that IM programs facilitate travel and financial transactions for individuals potentially involved in dubious activities. A report from the Organisation for Economic Co-operation and Development recently indicated that these programs could enable criminals “to perpetrate massive frauds and launder proceeds of crime and corruption reaching into the billions of dollars.”
However, cracking down on IM holders could devastate these small island economies, which rely on this revenue for infrastructure projects and welfare programs. Tourism, though immensely attractive, is limited due to the region’s geographical isolation. Agriculture, including crops like sugar cane and bananas, cannot compete with larger Latin American and global producers. Moreover, these Caribbean states are among the most vulnerable to climate change, a crisis predominantly caused by developed, industrialised nations. Despite contributing minimally to global emissions, these islands bear the brunt of the associated risks and damages.
“It would pretty much cripple the Caribbean industry,” remarked Rafael Cintron, CEO and co-founder of Wealthy Expat, which advises on second citizenships, to Bloomberg.
Strong demand for these passports has sparked scrutiny from both the EU and the US, leading to increased pressure on these programs. Program administrators are working to reassure officials of the programs’ integrity, emphasising rigorous review processes designed to exclude undesirable applicants. Despite this, some countries have restricted visa-free travel from these Caribbean nations as a precaution. These island nations remain hopeful that they can persuade the EU and US to accept the legitimacy of their CBI programs, which are essential for their survival.
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