DON'T UNDERESTIMATE THE IMPACT OF THE CARIBBEAN CITIZENSHIP BY INVESTMENT SCANDAL

You should be aware that the American RICO case, which focused global attention on the rampant corruption which exists in two East Caribbean states that offer Citizenship by Investment (CBI/CIP) has been dismissed at the request of the plaintiffs, due to the fact that the immunity defenses advanced by the defendants would have taken years to resolve in the appeals courts, and would have been prohibitively expensive. We understand that this news has been met with glee in certain corrupt government offices in Saint Kitts & Nevis, and in Saint Lucia, but before those bad actors start celebrating, they might want to know what developments that case has spawned, how things in CBI have now forever changed, will now further evolve towards true reform, and that they may be in for a surprise.

Let's Analyze:
(1) While the case is no longer pending, the Government of Saint Kitts & Nevis, on 3 December, issued a National Security Directive, ordering all CBI citizenship holders who acquired their passports at an illegal discount to pay up the legal minimum balance by 31 December, or face summary revocation of their citizenship and cancellation of their SKN passport. You can expect that global pressure will force first Saint Lucia, and ultimately Dominica, Antigua & Grenada to follow suit. Look at how diplomatic pressure was employed to compel them to sign the Memorandum of Agreement on minimum pricing; The United States was behind that, and will be expected to do the same here.

(2) The scandal has had an effect on a global scale. Don't expect that the presentation of a Saint Kitts or Saint Lucia passport at account opening anywhere in the EU will be received with open arms. Bank compliance officers are painfully aware of the scandal, and they do not want to unwittingly facilitate money laundering by a bad actor with a CBI passport. They have read all about Chinese criminals arrested in the US & UK with their CBI or CIP passports.

(3) The US is starting to have a heightened level of awareness regarding the national security threats posed by China in the East Caribbean, and Uncle Sam's powerful influence will certainly be felt in those small EC states who feast on CBI cash flow.

(4) For all you non-lawyers out there; the RICO case was dismissed by the plaintiffs Without Prejudice, which means it can be refiled, if circumstances permit. Stranger things have happened.

(5) The most ominous issue, and one which was recently brought up, is the threat that Saint Kitts Government, as part of its reform program, will now demand that those consultants who sold discounted Galaxy CBI refund all their commission and advance fees received from applicants. Think how that will go over in Dubai; companies will abruptly shut down, only for the owners to find American collection firms appointed by Saint Kitts taking legal action against them individually.

Points to ponder.