Grenada signs memorandum of understanding for regional authority creation and limits on CBI investments

Prime Minister Dickon Mitchell of the Organisation of Eastern Caribbean States (OECS) has signed a Memorandum of Understanding (MOU) to establish a competent regional authority for members with a Citizenship by Investment Programme (CBI). This program allows countries to grant citizenship to foreign investors who make substantial investments in the socio-economic development of the islands. The MOU includes a cap on the minimum investment threshold at US$200,000 and mandates the establishment of a regional competent authority by June 30, 2024 to set standards and regulate the CBI programs. Prime Minister Roosevelt Skerrit of Dominica also mentioned that OECS countries with CBI programs are working on mutual legislation to address concerns raised by European countries.

Skerrit highlighted that many EU countries, especially those in the Schengen area, have raised concerns regarding the CBI programs in OECS member countries such as Antigua, Dominica, Grenada, St Lucia, and St Kitts-Nevis. The MOU is aimed at addressing these concerns and ensuring that the CBI programs meet international requirements and best practices. While the MOU is a statement of intent and not a legally binding agreement, it provides a framework for cooperation and collaboration among the participating countries. It also includes provisions for the regulation of agents, marketing, and promotions related to the CBI programs.

The MOU outlines common standards for managing communications and promotions of the CBI programs, including prohibiting the marketing of CBIPS for “Visa-free-access” and the usage of photographs of passports in advertisements. Grenada signed the MOU on the same day it rebranded its CBI program and converted the Unit into a government agency instead of a Unit under the Office of the Prime Minister. The agreement emphasizes the importance of transparency and accountability in the promotion of the CBI programs and aims to address any disputes through negotiations and amicable resolutions.

While the MOU does not create legal obligations and is not enforceable in any court of law, it signifies a commitment among OECS member countries with CBI programs to work together towards establishing common standards and regulations. The establishment of a regional competent authority is a significant step towards ensuring that the CBI programs meet international standards and address concerns raised by European countries. The signing of the MOU by Prime Minister Dickon Mitchell and other OECS leaders demonstrates a collective effort to improve the governance and oversight of the CBI programs in the region.

Overall, the MOU represents a positive development in the regulation of CBI programs within the OECS, highlighting the importance of international cooperation and adherence to best practices. By working together to address concerns raised by European countries, OECS member countries aim to enhance the credibility and transparency of their CBI programs. The establishment of a regional competent authority and the implementation of common standards will help to ensure that the CBI programs benefit the socio-economic development of the islands while maintaining integrity and accountability in the process of granting citizenship to foreign investors.