ECCU Legal Meeting in Anguilla Reviews Bill for Regional Citizenship by Investment Regulator

The Eastern Caribbean Currency Union (ECCU) is on the cusp of a significant transformation in its Citizenship by Investment (CBI) programs. A draft bill, meticulously crafted through a collaborative process involving five participating member states – Antigua and Barbuda, Dominica, Grenada, Saint Lucia, and Saint Kitts and Nevis – has been reviewed by the attorneys general and Chief Parliamentary Counsel of these nations. This legislative endeavor marks a crucial step towards establishing a unified regional regulatory framework, bolstering the integrity and transparency of CBI programs across the ECCU. The meeting in Anguilla, which hosted this critical review, signifies the region’s commitment to harmonizing its CBI operations, ensuring they align with international best practices and address evolving global standards.

The journey towards a regional CBI regulator began in March 2024 with a Memorandum of Agreement among the five participating ECCU member states. This agreement laid the foundation for a collaborative effort to strengthen and regulate the CBI industry within a unified legal and institutional structure. The draft bill, prepared by legal drafting consultant Lydia Elliott, provides the legal framework for the establishment of this regulator as an independent body, responsible for overseeing compliance, transparency, and upholding the integrity of CBI programs across the member states. This significant move promises to elevate the credibility and sustainability of the CBI industry within the region.

The proposed Regional Regulator will assume a multifaceted role encompassing crucial aspects of the CBI process. Its responsibilities will include formulating regional CBI policies, licensing agents and marketers involved in promoting the programs, approving due diligence frameworks for vetting applicants, regularly auditing national CBI units to ensure adherence to established standards, maintaining a publicly accessible register of licensees, and actively deterring deceptive practices within the industry. This comprehensive oversight aims to foster greater confidence and trust in the CBI programs, safeguarding their long-term viability.

This initiative, spearheaded by the Interim Regulatory Commission (IRC), underscores the region’s commitment to a transparent and collaborative approach. The IRC, an eight-member body comprising legal, financial, compliance, and enforcement experts from the participating states, the Eastern Caribbean Central Bank (ECCB), the Organization of Eastern Caribbean States (OECS) Commission, and the Caribbean Community Implementation Agency for Crime and Security (CARICOM IMPACS), has played a pivotal role in shaping the regulatory framework. Over the past two months, the IRC has conducted extensive public consultations across the five member states, soliciting input from governments, opposition political parties, civil society stakeholders, and the general public, ensuring that the framework reflects diverse perspectives and addresses concerns.

Saint Kitts and Nevis has been a driving force behind the regional CBI reform efforts, initiating significant changes in December 2022 to enhance the sustainability, credibility, and resilience of the industry. Attorney General Garth Wilkin of Saint Kitts and Nevis, a participant in the Anguilla discussions, emphasized the importance of this regional collaboration, stating that the establishment of the regional regulator completes the loop on these reforms. He affirmed his government’s dedication to ensuring that the CBI industry remains a legitimate and respected instrument for national development, sensitive to both domestic needs and international expectations.

The collaborative effort to regulate, monitor, and modernize the CBI industry across the ECCU sends a powerful message to the international community: the Caribbean is committed to ensuring transparency, accountability, and the long-term sustainability of its CBI programs. This regional approach signifies a significant step towards harmonizing standards, enhancing due diligence processes, and promoting investor confidence. The regional regulator will provide a robust framework for oversight and enforcement, ensuring that the CBI programs contribute positively to the economic development of the participating nations while upholding high ethical and legal standards. The collective commitment of the ECCU member states to strengthening their CBI programs reflects their determination to maintain the integrity and reputation of this vital economic pillar. This initiative marks a pivotal moment for the Caribbean, demonstrating its proactive approach to adapting to evolving global standards and ensuring the long-term success of its CBI programs.