HOW WILL THE WORLD'S FOCUS ON RUSSIAN OLIGARCHS IMPACT THE CORRUPT EAST CARIBBEAN CBI STATES ?

 

As a direct result of the Russian invasion of the Ukraine, both the  United States and the Members of the European Union are zeroing in on the obscenely wealthy Russian Oligarchs, due to their support for the regime of Russian President Vladimir Putin. Whilst these new enforcement operations are bearing fruit in Europe, look for some unexpected consequences in the five East Caribbean states that sell Citizenship by Investment (CBI) passport to Russian nationals, irrespective of their criminal or corrupt backgrounds at home. Specifically, look at Antigua, Dominica and Grenada as primary targets. 

For decades, the East Caribbean has attracted illicit Russian capital, selling passports in conjunction with real estate investments that are, in truth and in fact, secondary to those prized passports,  which generally provides visa-free entry into the Schengen Zone countries of the European Union, and the United Kingdom, of which the EC jurisdictions are former colonies. Although the United States is aware of the widespread money laundering of Russian "flight capital" that occurs through the CBI passport sales, to date it has not taken any forceful steps to reign it in, even though the medium of exchange is the US Dollar. Political considerations involving foreign affairs in the Caribbean, not wanting to alienate local governments there, have obviously been a factor.

Now. however, the Ukraine invasion has galvanized the US into taking global action against the assets of the Oligarchs, wherever they may be. American law enforcement, and its intelligence community, now has marching orders to follow the money, regardless of the jurisdiction. How these new operations will manifest themselves is not known, but one can expect the following:

(1) The closure of correspondent accounts of East Caribbean banks that hold CBI deposits, and the seizure and forfeiture of open accounts in New York and other American banking centres.

(2) Efforts to attach real estate assets in the CBI states owned by Russian nationals linked to Putin.

(3) The seizure of luxury yachts and private business jet aircraft.

(4) The indictment of financial service professionals, and possibly government officials, who are facilitating Russian money laundering.,

(5) Revoking visas that permit travel to the United States of those who assist and advise the Russian targets.

Expect that these operations will evoke strong political and diplomatic responses from corrupt Caribbean leaders, considering their receipt of massive bribes and kickbacks for their services to Russian organized crime, for the Oligarchs are engaged in racketeering on a global scale, snd rely upon their Caribbean associates to assist them. Will the CBI programmes themselves be the unintended consequences of American actions ? We cannot say, but we will be watching; stay tuned.