St Kitts and Nevis Establishes Unit to Monitor Citizens’ Due Diligence
The St Kitts and Nevis government has announced plans to establish a Continuing International Due Diligence (CIDD) Unit to monitor its citizens’ investment activities on an ongoing basis. This move aims to ensure that citizens holding passports issued by the Federation continue to meet ethical standards.
Prime Minister’s Commitment
According to Prime Minister Terrance Drew, the CIDD will “ensure that citizens holding passports issued by St Kitts and Nevis and residing and working internationally, abide by the laws of the countries in which they reside and visit and that they respect international laws as well.” The Unit will also alert the Ministry of National Security to citizens being investigated or arrested for financial crimes.
Key Objectives
- Ensure that citizens holding passports issued by St Kitts and Nevis comply with ethical standards
- Protect the Federation’s reputation on the international stage
- Demonstrate the government’s commitment to ensuring confidence in its international partners
Leadership and Operations
Ambassador Ian M Queeley, a former Police Commissioner, has been appointed to lead the new Unit, which will be headquartered in Europe.
Harmonization Efforts Across the Caribbean Region
The move comes as part of ongoing efforts to harmonize citizenship by investment programs across the Caribbean region. In March, four out of five CBI country prime ministers signed a Memorandum of Agreement (MoA) outlining terms for due diligence on already-approved applicants, joint price floors, and information sharing among others.
The “Six CBI Principles” Agreed Upon with the United States Treasury
The MoA corresponds closely to the “Six CBI Principles” agreed upon by Caribbean CBI countries with the United States Treasury last year. These principles aim to ensure that citizenship by investment programs are transparent, accountable, and effective in preventing financial crimes.
Establishment of the St Kitts and Nevis Citizenship by Investment Unit (CIU)
The government has also established the CIU as a separate corporate entity, addressing concerns over mismanagement of the CBI program under the former administration. This move brings the CIU in line with Financial Action Task Force (FATF) recommendations.
Significance and Impact
These changes are seen as significant steps towards ensuring the integrity of St Kitts and Nevis’ citizenship by investment program, which has been a major contributor to the country’s economy. The government is keen to demonstrate its commitment to due diligence and transparency, both domestically and internationally.
Note: The MoA is set to take effect on June 30th, although some industry observers believe Caribbean governments may need more time to coordinate their policies.