East Caribbean Central Bank Appoints Legal Consultant to Develop Regulatory Framework for Citizenship by Investment Programs
The Caribbean is making significant efforts to improve the way its Citizenship by Investment (CBI) initiatives are administered. A key step towards making them more open and responsible is the Eastern Caribbean Central Bank (ECCB) hiring a legal expert to develop a unified set of regulations for these programs across several countries in the region. The idea is that this unified approach will boost the credibility and enhance due diligence of these investment migration programs within the Eastern Caribbean Currency Union (ECCU) and ensure they’re held to higher standards.
Appointment of Legal Drafting Consultant
The ECCB selected Ms. Lydia Elliott as their Legal Drafting Consultant, entrusting her to spearhead the development of a regional regulatory body for CBI programs. With over 40 years of legal experience under her belt, Ms. Elliott was picked after a thorough selection process. She actually knows the ECCB well, having served as their Legal Advisor from 1992 to 2003, giving her a solid understanding of the region’s financial and legal systems.
This appointment is part of a bigger plan to keep Caribbean CBI programs competitive on the world stage while still following global best practices. The consultancy is set to run for seven months, from January to August 2025. During this time, Ms. Elliott will be collaborating closely with regional stakeholders to develop a framework that meets both local and international standards.
Objective of the Regional Regulator
The primary goal of the newly established regulatory body is to create a standardized, transparent, and secure environment for CBI programs. Some of its key objectives include:
- To make the entire process more responsible and transparent, they want to enforce compliance more strictly.
- In order to ensure that the programs are not being mistreated, they will be investigating complaints and security concerns.
- To ensure they’re operating up to international standards, they wish to establish solid ties with both regional and global organizations, such as the United States and the European Union.
Interim Regulatory Commission (IRC)
The oversight of this initiative falls under the Interim Regulatory Commission (IRC), an eight-member panel comprising representatives from various regional bodies. The appointed members are:
- Antigua and Barbuda – Lieutenant Colonel Edward Croft (Deputy Chair)
- Commonwealth of Dominica – Francine Baron
- Grenada – Julia Lawrence
- Saint Kitts and Nevis – Archdeacon Isaiah Phillip
- Saint Lucia – Evaristus Jn Marie
- CARICOM IMPACS/JRCC – Rufus Ferdinand
- OECS Commission – Henith Gabriel
- ECCB – Governor Timothy N.J. Antoine (Chair)
These individuals will play a crucial role in shaping the new regulatory framework and ensuring that it is implemented effectively.
How Will the New Regulatory Body Reshape Caribbean CBI Programs?
The establishment of a regional regulator is expected to bring several key changes to Caribbean CBI programs, including:
Harmonization of policies: The aim is to get everyone on the same page by standardizing the application process and the due diligence required across all participating countries. This should stop any discrepancies and inconsistencies.
Enhanced security measures: Coordinated due diligence efforts will be able to spot potential security risks and make sure only eligible, trustworthy applicants are approved.
Improved global credibility: By meeting international standards, the Caribbean CBI programs will enhance their reputation, making them even more appealing to investors who are looking for a second citizenship
Aligning with the Highest U.S. and EU Standards
The move toward a unified regulatory body reflects a commitment to strengthening the integrity of Caribbean CBI programs and aligning with the highest standards set by the United States and the European Union. Some of the key demands from these global powers include:
Coordinated application denials:
Preventing rejected applicants from reapplying in another Caribbean jurisdiction.
In-person or virtual interviews:
Strengthening vetting procedures beyond document verification.
Stronger oversight and compliance:
Ensuring that CBI programs are not used for illicit activities such as money laundering or sanctions evasion.
These measures are designed to align Caribbean CBI programs with global security standards and maintain favorable diplomatic relations with major international partners.
Will These Changes Impact Investors?
Investors seeking Caribbean citizenship through CBI programs may experience some changes due to the new regulatory framework. These include:
Stricter regulations:
Increased due diligence and compliance measures may lengthen processing times and tighten eligibility requirements.
Higher investment costs:
Since July 2024, Caribbean CBI programs have increased their pricing, reflecting a commitment to enhanced security and transparency. These adjustments ensure alignment with international standards while maintaining the long-term sustainability of the programs.
Long-term stability and credibility:
While these changes may pose short-term challenges, they ultimately strengthen the integrity of Caribbean CBI programs, making them more reliable and sustainable in the long run.
UNO Capital to Assist
At UNO Capital, we closely monitor all of these developments and their potential implications for investors. Our expert team is here to guide you through the latest changes and help you in securing your second citizenship. Contact us today to secure your second citizenship.
