An IMGW News Report
The Government of St Kitts and Nevis has enacted significant reforms to its renowned Citizenship by Investment (CBI) Program with the passing of the Citizenship by Investment Unit Act, 2024. Approved by the National Assembly at the end of last week, this legislation aims to corporatise the Citizenship by Investment Unit (CIU), enhancing its efficiency, transparency, and professionalism.
IMGW News brings you the Key Changes and their Implementation Timeline:
- Corporatisation of the CIU: The CIU will transition from a government department to a statutory corporation, similar to the St Christopher Air & Sea Ports Authority and the Tourism Authority, improving operational efficiency and aligning with international best practices.
- Governance and Oversight: The Act establishes a Board of Governors for CIU oversight, including key positions like a Chairperson, CEO, CFO, and Chief Due Diligence & Anti-Money Laundering Compliance Officer, ensuring robust management of the CBI Programme.
- Commitment to Excellence: CIU staff will receive performance-based incentives to maintain high standards in operations and management. Annual independent audits and reports will ensure transparency and accountability.
- Enhanced Due Diligence: A new Continuing International Due Diligence (CIDD) Unit will ensure ongoing compliance and protect the CBI Programme’s integrity. Headquartered in Europe, it will monitor economic citizens globally and collaborate with international law enforcement.
- Revenue Management: The CIU will be funded through net due diligence fees and fees from International Marketing Agents and Authorised Agents, while revenues from CBI applications and contributions will go into the Federal Consolidated Fund.
Implementation Date
The Citizenship by Investment Unit Act, 2024 will be gazetted shortly, with the CIU’s new corporate structure becoming operational after appointing the Board of Governors and completing staffing arrangements. The CIDD Unit will be fully operational by the 31st of July 2024.
Statements from Leadership
Prime Minister Dr Terrance Drew emphasised the importance of these reforms, stating, “We are serious and we want to ensure that we engender confidence in our international partners that we are serious about their security as well.” He highlighted that these changes align with recommendations from the Financial Action Task Force (FATF) and the Organisation for Economic Co-Operation and Development (OECD).
Mr Michael Martin, Head of the CIU, noted the collaborative approach in developing the new Act, saying, “The changes put forward in the Citizenship by Investment Unit Act, 2024 indicate our Federation’s constant commitment to preserving the integrity of our program.”
Conclusion
The Citizenship by Investment Unit Act, 2024 represents a significant step forward for the St Kitts and Nevis CBI Program. By corporatising the CIU and establishing the CIDD Unit, the government strengthens the program’s integrity, transparency, and appeal to international investors, maintaining its position as the longest-running and most transparent program of its kind.
The full, official statement issued by the Government of St Kitts and Nevis can be downloaded from here: Link