GLOBAL CBI CONSULTANCIES AND THE UNAUTHORIZED PRACTICE OF LAW

When applicants wishing to acquire Citizenship by Investment (CBI) passports, which they are seeking to obtain from countries in Europe and the East Caribbean that offer them for sale, They erroneously believe that they are receiving legal advice from competent, qualified attorneys at CBI consultancies. Nothing could be further from the truth; they are being fed marketing talking points, often from sales agents who have never been to law school, or if they are lawyers, are not admitted to the practice of law in the jurisdictions where they are rendering what amounts to legal advice.This is known as the Unauthorized Practice of Law, and as a result,  CBI applicants are not being properly given full and accurate legal advice, to their detriment, which they often discover later on, long after the sale.

If you look closely at the websites of the most prominent CBI consultancies, they refer to their staff as "legal specialists, " and not attorneys, solicitors or lawyers. This is because, to render legal advice to a client, which is defined  as  " The giving of a professional or formal opinion, regarding the substance or procedure of a matter,  in relation to a particular factual situation. The provision of legal advice will often involve  analyzing a set of facts, and advising a person to take a specific course of action, based upon the applicable law."

the individual rendering the advice must not only be an attorney, he or she must also be formally admitted to practice in the jurisdiction where the client is being directed to apply for a CBI citizenship and passport. If you inquire, you will find that most of the so-called legal specialists or legal experts selling CBI products have not graduated from law school, they are merely salesmen, and the very few who possess legal educations are NOT admitted in the countries where they are advising their clients to purchase CBI products.

What are the clients usually missing, when they buy a CBI citizenship from such an unqualified person:

(1) Information on the possible tax consequences which may arise from their purchase.
(2) Details of how the jurisdiction can revoke or suspend their citizenship and passport.
(3) Information on whether they will be subject to increased risks, especially scrutiny from
law enforcement agencies, customs and immigration officials, and other  governments, as the direct result of their using their CBI passport in international travel, including interrogation from border agencies.
(4) Information about the possible public publication of the fact that they hold a CBI passport from a jurisdiction known to sell CBI products to money launderers, white collar criminals, Politically Exposed Persons (PEPs) and other high-risk individuals.
(5) Negative or unwanted publicity in their home countries, if international media reports on their possession of a CBI passport.

Most CBI applicants do not retain independent counsel to advise them about their CBI purchase, which is a major mistake, for the CBI consultancy, who receives a large commission in the sale, will certainly not be objective about their advice. unfortunately, the countries issuing CBI passports, who receive large fees from the applicants, will never complain about the quality of advice rendered to their buyers. Let the CBI buyers beware, caveat emptor, when it comes to CBI products, lest they get burned.

MAJOR MEDIA DO THEIR READERS A DISSERVICE BY RECOMMENDING CITIZENSHIP BY INVESTMENT PASSPORT PROGRAMS

 

Mainstream articles appearing recently, in both the Wall Street Journal and Forbes, and discussing options available to affluent readers who might be interested in acquiring a Citizenship by Investment (CBI) passport and citizenship in one of the five East Caribbean States that have recently reduced the cost of their offerings, are not disclosing the negative aspects of purchasing, holding and using a CBI passport. The glossy marketing programs of the international consultancies that offer CBI products do no educate their prospective clients to these potential dangers; they find out later, to their dismay. Since  major media often end up endorsing CBI, without exploring the darker aspects, and risks, of buying them, we are shall now summarize what we believe to be the most important issues:

1. THESE JURISDICTIONS ARE PRESENT OR FORMER TAX HAVENS, WHERE MONEY LAUNDERING OF THE PROCEEDS OF NARCOTICS TRAFFICKING DID, OR STILL DOES, OCCUR. CBI passport buyers rarely consult a qualified independent attorney, to perform due diligence on the jurisdiction where the passport is being issued. Is it not still a known tax haven, and will that fact increase IRS scrutiny of the new passport owner, should he choose to bank ethere ? Is it now, or was it formerly, the depository of drug trafficking profits ? Passport purchasers may be, unwittingly, raising their profile with American and Canadian law enforcement by just acquiring, and using a CBI passport from a high-risk jurisdiction.

2. MANY OF THESE EXPENSIVE CBI PASSPORT PROGRAMS ALLOW THE ISSUER TO REVOKE THE PASSPORT WITHOUT ANY DUE PROCESS, OR LEGAL PROTECTION. Buyers may later find out, to their chagrin, that their prized passport can be revoked at will, without any legal cause or reason, and that this action is not subject to judicial or administrative review of any type. Furthermore, the local courts will most likely not be a suitable venue for redress of your grievances about the matter; as foreign plaintiffs opposing government agencies, your recovery is doubtful, and could even result in your arrest on bogus criminal charges.

3. MANY OF THESE CBI PASSPORTS ARE SOLD TO INTERNATIONAL CAREER CRIMINALS, AND YOUR CBI PASSPORT MAY END UP BEING TARNISHED BY ARRESTS OF OTHERS HOLDING A SIMILAR TRAVEL DOCUMENT, ESPECIALLY IF NEGATIVE MEDIA REPORTS EXPOSE THE PASSPORT AS A TOOL FOR CRIMINAL ACTIVITIES. The legitimate CBI passport holder may suffer from "guilt by association," where the jurisdiction is repeatedly cited in the press as a favorite device of white-collar criminals.

4. CBI PASSPORTS ARE OFTEN EMPLOYED BY INTERNATIONAL SANCTIONS EVADERS, TERRORIST FINANCIERS AND AGENTS OF STATE SUPPORTERS OF TERRORISM. do you really want to be associated with the likes of those classes of CBI passport holders ? Read where many news articles report that the individual arrested was found to be holding multiple CBI passports, all with different names and dates of birth. 

Before even considering purchasing a CBI passport, it is humbly suggested that you retain the services of a qualified attorney, experienced in the Caribbean environment, including its region-specific risks and dangers, especially where CBI passports are involved. Do not dive in feet first without learning about all the dangers you could possibly be exposing yourself to. After due consideration, you most likely will decide to pass on the CBI passport program, because it results in a level of potential risk that most individuals are not willing to assume. Caveat emptor.

CONFLICT OF INTEREST IN CBI INDUSTRY ONLINE PUBLICATIONS RESULTS IN THEIR FAILURE TO DISCLOSE THE INHERENT RISKS TO INVESTORS OF SECOND PASSPORT PURCHASES

Online media in the Citizenship by Investment (CBI/CIP) industry, which is relied upon to a large part by investors seeking to acquire a second passport, and which purport to be a source of objective information about economic citizenships, fail to detail the risks consumers are taking on when they apply for a CBI investment. This is because companies such as Immigration Migration Insider (IMI) have a major Conflict of Interest, due to the influence of passport vendors and consultancies, which are major financial contributors to the publication, and frequently publish articles about CBI that fail to disclose the complete truth, concerning risks, as well as events which the investors should be advised of, prior to paying six figure fees and costs to purchase an economic passport. Don't expect the full truth from any publication who leading contributors are from the industry it is reporting upon.

The CBI media industry itself misleads the public, categorizing CBI as a valuable tool for wealthy individuals in high-risk jurisdictions to relocate to safer countries, or to give their children better educational opportunities. In truth and in fact, visa-free access to the Members of the European Union and the United Kingdom and Commonwealth countries is the principal reason for purchase.

Due to the Conflict of Interest, IMI and other online publications fail to detail several major risks that CBI purchasers potentially face, and which, had they known these shortcomings, might make them change their minds. Some of these are:
(1) Many of IMI's vendor clients have been selling illegally discounted CBI products for years, the sale of which constitute criminal acts under Saint Kitts & Nevis law, and also subject the purchasers to summary revocation of their expensive passports. IMI continues to support these companies and allow them to contribute content and advertise on its pages.
(2) Many of the CBI jurisdictions, such as Saint Kitts, Saint Lucia, Dominica and Malta, have a long history of not only being rogue tax havens, but as centers for money laundering, fraud, international sanctions evasion and corruption, and who openly sell CBI passports to career criminals involved in such illicit activity, who wish to conceal their true identities.
(3) There is a major ongoing criminal investigation in the United States, which could result in the indictment of CBI vendors and consultants, the loss of those valued EC and UK visa privileges, and even the complete termination of CBI programs. The risk to investors of loss of a substantial amount of money is again, not disclosed by IMI to its readers. Additionally, The role of Christian Nesheim, the CEO of IMI, who facilitated the CBI industry's program on disinformation and nondisclosure, through allowing vendors and consultants a forum which was supposed to be truthful and objective, needs further investigation.The role of Christian Nesheim, the CEO of IMI, who facilitated the CBI industry's program on disinformation and nondisclosure, through allowing vendors and consultants a forum which was supposed to be truthful and objective, needs further investigation.

Therefore, obtain advice from competent legal counsel before engaging in any application for the purchase of a second citizenship & passports. Know the risks before you buy.

FOR FURTHER INFORMATION:

ANGRY COMMENTS FROM PROFESSIONALS TO THE DISCLOSURES WE REPORTED REGARDING THE CHRISTIAN NESHEIM STATEMENTS ON THE ILLEGALLY-DISCOUNTED CBI SCHEME OF CARIBBEAN GALAXY AND SOLD BY LATITUDE/RIF TRUST

CHRISTIAN NESHEIM, PRESIDENT OF LEADING CBI INDUSTRY PUBLICATION, DISMISSES GALAXY'S ILLEGALLY-DISCOUNTED PASSPORT SALES, STATES EVERYBODY BENEFITTED FROM THE 'SCAM"

CBI CONSULTANCIES FLOOD THE INTERNET WITH SPONSORED ARTICLES TO COMBAT EU POSITION ON CITIZENSHIP BY INVESTMENT

International consultancies that sell Citizenship by Investment (CBI/CIP) passports, involving programs operated by a number of European Union and East Caribbean states, have recently inundated the internet with sponsored articles, all painting an artificially rosy picture of the benefits applicants can derive from holding a CBI passport. The sheer volume of these "puff pieces" is crowding the legitimate news stories that appear about CBI matters, pushing them far to the rear of any google inquiry. Unfortunately, that is the aim of these "news management" tools.

The reason for such extreme measures is clear; the recent European Union position on Citizenship by Investment programs among the Members of the EU. In short, the European Parliament, having demonstrated the link between CBI passport holders and financial crime, especially money laundering, wants those programs terminated. both Malta and Cyprus operate CBI programs, and they are exploited by Russian organized crime syndicates, Iranian nationals seeking to evade global sanctions, narcotics traffickers, white collar criminals, and many other categories of unsuitable applicants engaged in criminal activities. Europe also fears that CBI passports may be used for terrorist financing purposes.

CBI consultancies, particular those who derive large commissions from their business with the five East Caribbean states, especially Antigua & Barbuda, St Kitts & Nevis, and the Commonwealth of Dominica, concerned that the EU position will deter clients who read the press about its policy, have hastened to pollute the Internet with a large number of infomercials about the vitrues of each specific country's CBI products.

Any individual seeking information about CBI programs may not see the EU stories, as he is confronted with a raft of sponsored articles that curiously neglect to mention any of the negative issues applicants, as consumers, should know, including the EU policy, and the fact that many of the nations offering CBI passports are tax havens, which may paint a target on the passport holders' backs for US, Canadian UK, and EU law enforcement agencies, due to the high percentage of criminals arrested holding such travel documents.

The answer is, of course, due diligence, It is extremely troubling that affluent CBI applicants generally fail to engage a competent attorney to check out all the possible negative aspects of acquiring such a passport from specific CBI jurisdictions, and they later find out, to their chagrin, that they should have done so. Spending six figures for something that might raise your personal risk levels requires legal advice, and not from some dodgy CBI consultancy salesman claiming to be a legal expert in the CBI field; get an independent opinion, please, as there are dangers.

ARTICLE PROMOTING GRENADA'S CBI PROGRAM MISLEADS THE INVESTING PUBLIC

A recent article, appearing in Caribbean News Global, stated that Grenada's Citizenship by Investment (CBI) program "has been ranked as one of the best-run programs, by the international Monetary Fund (IMF), World Bank and other [unnamed] financial institutions."

Unfortunately, this statement is not only untrue, the IMF and World Bank have published what amount to be warnings to the investing public, regarding Grenada's CBI program. This does a disservice to foreign investors from high-risk countries, who are seeking to place investments in Grenada which will result in the issuance of a passport and citizenship papers.

Let's take each allegation in turn:

(1) Regarding the International Monetary Fund, the 2018 and 2019 Consultations and Staff Reports, neither rank Grenada's CBI program against others, nor find it to be"one of the best-run." To the contrary, the INF Consultations point out that Grenada was just released from its Grey AML/CFT status, and that there are concerns about the due diligence investigations being conducted upon CBI applicants.

(2) The World Bank has also not specified in any of its reports that Grenada's CBI program is "best-run;" Indeed, it has made no editorial comments or judgments about the CBI program whatsoever, and mainly files statistical information.

(3) Given the eighteen million dollar ($18,000,000) loss suffered by foreign investors who paid into the Government-approved Grenada Sustainable Aquaculture program, which was never built, any such puffery about Grenada's GBI programs should be completely ignored by prospective investors, who will want to choose other CBI jurisdictions for their capital.

(4) Concerning the balance of the statement, to the effect that unnamed financial institutions also regard Grenada CBI as best-run, the banks have not been identified, and since most reports that purport to rate CBI programs calculate their worth solely upon how many visa-free jurisdictions one can visit with the passport, we cannot regard these ratings are valid.

When conducting an appraisal of a CBI passport program, do NOT read the articles  obviously sponsored by international CBI consultancies, as they are little more than a marketing ploy, designed to let you think you have found the absolute best CBI program. You only learn,  too late, that there are a number of negative aspects which were not explained to you. Next time, engage an experienced attorney to perform enhanced due diligence, and make sure he is independent, qualified to practice law in that jurisdiction, and is aware of prior lawsuits, arrests, seizures and forfeitures, and how this specific CBI passport may be revoked or cancelled.

APPLICANTS FOR CBI PASSPORTS RISK BECOMING STATELESS PERSONS

Applicants for Citizenship by Investment (CBI/CIP) programs, whether those offered by the East Caribbean states, or of those countries in the European Union, run the real risk of ending up as Stateless Persons. Defined by the United Nations as " A person who is not considered a national of any state as defined by its laws,"  a Stateless Person has no absolute right of residence in any nation, because he or she is not regarded as a national by any country. In history, Stateless Persons have been denied basic Human Rights, especially when they were refugees seeking asylum, support or safe harbor.

Why is this coming up in connection with CBI programs and passports ? Recent close examination of publicly-released records of foreign nationals holding Malta citizenship, acquired through that country's CBI program, has revealed that a number of prominent Kuwaiti nationals are listed as successful applicants. This is a huge legal problems for those individuals, for  Article 11 of Kuwait's Nationality Law provides that a Kuwaiti loses his or her nationality of a foreign citizenship is acquired.

This means those Kuwaitis are no longer nationals of the State of Kuwait. Obviously, they did not have the foresight to consult with competent Kuwaiti legal counsel when they acquired Maltese citizenship, for any lawyer licensed to practice there would have specifically warned them about the fact that their Kuwaiti citizenship was in serious jeopardy of being lost, through operation of law, whether through court or government action or not.

One of major complaints about the global CBI consultancy industry is that applicants never receive legal advice about the many potential adverse legal consequences that may arise, solely because they acquire a CBI passport. Apparently the "legal experts" among the sales staff of these consultancies, who are more interested in closing the sale, rather than properly advising the applicant. Also, in truth and in fact, those so-called experts on the consultancy staff are not admitted to the practice of law in the applicants' home countries, and they may not even know, for example, about Kuwait's Article 11, or other country-specific laws.

Rather than this being a purely academic exercise, the risk of statelessness is quite real for CBI passport holders whose act of acquiring that passport cost them their original nationality, because, if for any reason their adopted CBI country revokes their passport, for any reason, they become, by definition, Stateless Persons.

CBI-issuing countries have revoked or cancelled CBI passports when the individual is arrested, or even wanted, for alleged crimes anywhere in the world; he might also be charged for a political offense, due to his opposition to a government or regime, and the CBI jurisdiction, without any Due Process, can abruptly terminate citizenship rights.

Such an action would leave the now former-CBI passport holder and ex-Kuwaiti stateless. Many nations have laws regarding the prohibition on dual citizenship; some cancel the original nationality altogether, like the State of Kuwait. Given that the CBI consultancies are concealing this "small"drawback to buying their products, its is suggested that all individuals choosing to apply for CBI citizenship and passports anywhere, secure the legal services of an attorney qualified to advise them concerning the ramifications of such a decision, be they legal, immigration, taxation, exposure to law enforcement investigation, increased personal risks surrounding their new nationality, and any other legal issues that must be considered, in advance.

CITIZENSHIP BY INVESTMENT PASSPORTS AND THE LAW OF UNINTENDED CONSEQUENCES

Since 1982, When the Foreign Minister of St. Kitts & Nevis, WILLIAM HERBERT, created the first Citizenship by Investment (CBI) passport programme, which allowed foreign nationals to acquire Kittitian citizenship, complete with travel document, I have been covering the pattern of abuse of CBI by transnational financial criminals, terrorist financiers, and especially corrupt Politically Exposed Persons (PEPs). The clear and present money laundering dangers that they present to the world's financial community have been the subject of many articles on this blog. 

There is another category of victim, however, that is rarely mentioned: the legitimate applicants for such passports, who represent the vast majority of individuals who acquire them, either to facilitate visa-free global travel, or to avoid the stigma of being from a high-risk jurisdiction, or for valid tax planning reasons. These people deserve to know the negative aspects of using CBI passports in international travel and commerce, and we present herein a number of them, in the hopes that they will become more knowledgeable and educated consumers of CBI products. Consider this a legal "Look Before you Leap," if you may.

1. MOST APPLICANTS DO NOT CONDUCT DUE DILIGENCE ON THE JURISDICTION THAT IS ISSUING THE CBI PASSPORT. Unfortunately, most individuals who apply for CBI passports do not retain independent legal counsel before proceeding. Whilst a number of the individuals at the various CBI consultancies are indeed attorneys they do NOT represent the applicants; in fact, they are generally paid a lucrative commission on all sales which they close, meaning that candidly cannot be trusted to disclose any possible negative factors surrounding the specific country that is selling you this CBI citizenship & passport. They are rarely admitted to the practise of law in that jurisdiction, and most likely do not know whether the local legal system is corrupt, and consistently disregards the Rule of Law for political actions. The CBI sales staff cannot and do not advise you on local taxation, customs duties, and other local laws which may impact you, directly or indirectly and what about local punitive criminal laws, the personal danger from violent crime you could face when you visit, or any number of possible dangers and pitfalls you may encounter in the future in your new adopted country? 

2. YOU MAY HAVE JUST PAINTED A TARGET UPON YOUR BACK BY SIMPLY HOLDING THAT CBI PASSPORT: Most of the jurisdictions that offer CBI products are former, or present, tax havens favored by transnational financial criminals, money launderers and members of foreign intelligence services. This means that you have a very good chance of coming to the attention of law enforcement agencies in North America and the European Union whose mission includes the interdiction and suppression of such activities when they impact their economies. Do you really want to be profiled, and become a Person of Interest, solely because you show up, arriving at one of their airports or ports, carrying what they judge to be a high-risk passport?

3. YOU MAY LOSE THAT VALUABLE AND EXPENSIVE PASSPORT FOR A NUMBER OF REASONS AND HAVE NO LEGAL REDRESS. What if the programme is terminated, as recently occurred in Cyprus and Bulgaria? What if the issuing jurisdiction revokes your passport without legal justification? It is extremely doubtful that you can successfully navigate your way through the local courts, to regain the privileges you paid for, as local courts in small island republics consistently favour government, especially corrupt government, over foreign nationals. What do you do then?

4. THE CBI JURISDICTION THAT ISSUED YOU THAT PASSPORT MOST LIKELY ALLOWED CRIMINAL ELEMENTS TO ACQUIRE THEM ALSO. There is generally little Due Diligence, and Enhanced Due Diligence, in that corrupt offshore which issued your passport, probably took cash to sell to international criminals, who eventually beak the law, and get arrested. Guilt by Association is unfair, but is a fact of life. Customs and Immigration officials at countries where these criminal have already committed crimes may not look kindly upon all individuals seeking to enter who happen to hold passports used by notorious fraudsters or other types of white collar criminals.Will you really enjoy being interrogated at length when traveling, and having your possessions regularly searched, with extensive delays?

These are just a few topics that have come to mind; there are several others. Prospective applicants for CBI passports are urged to consult the services of a competent attorney before seriously considering the purchase of a CBI  economic citizenship & passport. Please do not jump in feet first until you are aware of the dangers involved.  

   

EU TELLS MEMBER STATES TO PHASE OUT CITIZENSHIP BY INVESTMENT PROGRAMS

It appears that the European Union has had enough of the problems created when its Members issue CBI passports to foreign nationals. Citing serious money laundering and tax evasion risks, the European Parliament's Special Committee on Financial Crimes, Tax Evasion and Tax Avoidance has issued a Draft Report that recommends that EU Member States phase out their Citizenship by Investment (CBI) and Residency by Investment (RBI) programs.  This is the first official notice of a new European position on its CBI problems, and may have been a direct response to the challenges that the EU is confronting due to its ongoing problems in the Republic of Malta, whose dodgy CBI program has come under attack from Brussels.

The best way to understand the EU position, here is the complete text of the relevant paragraph, verbatim, to allow readers to draw their own conclusions, regarding how seriously the EU is treating its CBI-related problems:

"The European Parliament ...
91. Concludes that the potential economic benefits of CBI and RBI schemes do not offset the serious money laundering and tax rvasion risks that they present; calls on member States TO PHASE OUT ALL EXISTING CBI OR RBI SCHEMES AS SOON AS POSSIBLE." [emphasis added]. Draft Report at 18.

Read the entire Report here.

Some observations:

(1) even if the EU  succeeds in closing down Malta, Cyprus, and all the other EU Member States who currently operate CBI or RBI programs, there will still be tens of thousands of valid CBI passports for compliance officers at international banks to deal with during the next decade. Many of the holders are from Russia, China, and other high-risk jurisdictions. How with the EU treat those passports ?

(2) If Europe shuts down its CBI and RBI programs, what effect will this action have upon Caribbean jurisdictions ? The UK, for example, has had quite a bit of trouble with foreign criminal elements using CBI or RDB passports, and it may eventually want to see those East Caribbean CBI states follow suit. The problem is the cash generated is generally used for budgetary needs, and the EC states may not willingly chose to abandon that cash flow. What will the EU and UK do then?

CBI passports have been a major thorn in the side of the world's compliance officers, for they serve to disguise the true risk levels of their holders, most of whom come from high risk jurisdictions, some even having ongoing combat operations in progress. Will they soon become an endangered species ?

THE FOLLY OF THE EAST CARIBBEAN CBI STATES: ALLOWING APPLICANTS TO MAKE PAYMENT IN US DOLLARS

Use of US Dollars can confer extraterritorial jurisdiction of US Courts

The issues that compliance officers at North American banks, and US & Canadian immigration officers, have with holders of Citizenship by Investment (CBI) passports have been reported in the financial press of late, but there is a more serious problem that the five East Cabibbesn CBI states are facing: the threat of criminal prosecution, by the US Department of Justice, for violations of money laundering laws by government leaders, notwithstanding that they operate these probems outside the Unted States.

The problems the EC states have is that US money laundering laws confer what is known as extraterritorial jurisdiction upon foreign nationals, and this is occurring because the Caribbean attorneys who created CBI legislation committed what some legal experts regard as a fatal error: they adopted provisions in their CBI laws that allowed CBI program managers to accept US Dollars (USD$) as payment for their economic citizenships. That has has been judged to be a major error.

Why is this now actually considered legal malpractice ? Any attorney drafting legislation in his country should be aware of the possbility that the laws he is creating might increase specific risks in other jurisdictions, and carefully weigh the potential consequences with his client before recommending that they be enacted into law.

In this case, most attorneys in the Caribbean are aware of the Money Laundering Control Act of 1986 (18 USC §§1956-1957), which imposes a maximum penalty of twenty years for violations, plus a mega-fine. The lawyers drafting CBI legislation ibn the East Caribbean failed to research that statute in depth, for if they had they would have learned that it has extraterritorial jurisdiction.

This means that a foreign national could be charged if the US Dollars they accept, for any purpose, are the proceeds of what are referred to Specified Unlawful Activities, and any portion of the transaction has a connection (nexus) with the United States, such as being deposited in a US bank, or transiting the American financial system. The MLCA, which was strengthened by the USA PATRIOT Act of 2001, will reach out and touch foreign nationals (e.g Reza Zarrab), for acts that they committed totally outside the USA.

Therefore, any dodgy applicant, using criminal proceeds for his cash to purchase that CBI passport, which is later deposited in a dollar account, and ends up passing into, or through, a US financial institution, has implicated not only himself, but the CBI program, and the country's leadership, as well, under US law.

We doubt that the Caribbean attorneys tasked with drafting their local CBI laws even bothered to look at the possible negative consequences of accepting US currency. They probably used the pioneering St Kitts & Nevis CBI program as a template. Unfortunately, that program became law back in 1984, two years before money laundering became a federal crime. Why didn't someone realize that using US Dollars might have consequences ?

Should the CBI program directors, and their attorneys, have chosen the Pound Sterling, instead of the US Dollar ?  Probably so, given the extraterritoriality issue, as well as the fact that the USA has very broad conspiracy laws, unlike the UK, which adds to the undesireability of accepting US Dollars, unless you are completely sure of the Source of Funds, and of your applicant's bona fides.

We understand that the leaders of a number of the East Caribbean CBI states are feeling anxious of late; are they feeling a cold chill, perhaps coming from the possibility that the US Department of Justice might be investigating them ?  

MASSIVE CBI FRAUD PERPETRATED ON PERSIAN GULF APPLICANTS EXPOSED BY WHISTLEBLOWERS

Reports from the Persian Gulf States indicate that there has been a major scandal exposed, involving unethical CBI consultancies which have preyed upon applicants from that region, and who have financially benefited from the fraud. The consultancies, which have misrepresented the type of CBI investment their customers are making, (meaning the more expensive real estate option) to obtain citizenship and St Kitts passports, are then pocketing the difference, which is then covertly shared with developers. Whistle blowers, who are legal professionals in the UAE, exposed the scam.

 The result is that money is never paid in for construction purposes, resulting in a reputed loss of an estimated $30m-$100m, which is not supporting CBI project development, as required by the CBI contracts. The applicant never receives the benefit of the real estate option, and the construction projects are never completed. A large number of them are now lying incomplete and dormant in St Kitts, as evidence of the scam. 

Credit inage: Gulf Times

Additionally, forged documents are prepared and presented to CBI applicants, who are deceived as to the actual investment details of their CBI agreements.

To make matters worse, the Opposition leader has promised, when he is returned to the office of Prime Minister, to revoke all the CBI passports and citizenship agreements that were fraudulently entered into, irrespective of the innocence of the applicants in the scheme.  The scandal threatens to affect the stability of the present SKN government, as charges and counter-charges of misconduct and criminal activity are made, and hurled at the sitting government and the CBI agency, as well as at the guilty CBI consultancies engaging in this fraud in the Persian Gulf States.

Given the transnational elements of the fraud, criminal prosecution is highly unlikely. Observers of the East Caribbean CBI industry have long warned that, without any regulatory agency having jurisdiction over the consultancies, legal and ethical violations were likely to occur. Many CBI investors, who generally made their purchases without the assistance of an attorney, are now in danger of losing their CBI passports, and their entire investment.

LEADERS OF CBI EAST CARIBBEAN NATIONS WHOSE COUNTRIES PROFIT FROM CBI PASSPORTS WITH VISA-FREE ENTRY TO THE UK COME DOWN HARD ON BRITAIN

 

The prime ministers of the five East Caribbean states that have been selling Citizenship by Investment (CBI/CIP) passports to all who apply, and which allow the holders, as nationals of Commonwealth of Nations members, visa-free access to the United Kingdom, are hopping mad, according to Britain has cancelled visa-free access for the Commonwealth of Dominica, due to what the Home Secretary declares pose a risk to the UK."

That visa-free entry is, in a large part, the reason Iranians, Russians, Syrians and North Koreans all beat a path to the East Caribbean "CBI states," so that they can, posing as West Indians for former British territories, can slip into Europe, without being questioned and interrogated in a visa application, and rejected. it is the Golden Goose that Dominica's corrupt leadership, especially its Prime Minister Roosevelt Skerrit has benefitted from for two decades, as have leaders from the other four CBI passport-selling states. They all now fear, rightly so, that their lucrative CBI money train, which accept payment only in US dollars, may soon be over.

Not only are the five CBI EC states vigorously complaining, and even angry, about Dominica's "loss," but three other jurisdictions in Organization of Eastern Caribbean States (OECS), who don't even have CBI passports for sale, have also raised their voices in protest, in what most observers have concluded is nothing less than anti-UK  sentiment, couched as anti-Colonialism. This is about threats to the United Kingdom, ladies and gentlemen, about terrorist financiers, corrupt PEPs, thieving Russian Oligarchs, and other of the Usual Suspects in the world of transnational crime, all sneaking into the UK with impunity.

As their response, the EC Prime Ministers have privately stated that they intend to forthwith remove the image of the British Sovereign from their common currency, the East Caribbean Dollar. Whether this action has any effect upon King Charles III is doubtful, and their negative comments may even steel the resolve of the UH Home Secretary to yank the visa-free status of ALL the remaining four EC states, as the unintended consequences of the jingoistic actions of the PMs. According to reliable reports, the image will be removed by the EC central Bank Monetary Council.

In truth and in fact, given that the European Union has also had it with dangerous and unsuitable individuals clutching those CBI passports, and doing damage in Continental Europe's Schengen Zone. Only lone Malta continues to plague EU members with financial criminals carrying those purchased CBI passports; the other EU jurisdictions have been forced to shed their economic passport programs, and the EU has signalled that EC CBI passports may have a short shelf life. 

Are CBI passports an endangered species? We cannot say, but Eastern Caribbean leaders may have inadvertently cut the life expectancy of their passport sales programs short this week; Stay tuned.

SWALLOW IMMIGRATION SELLS MULTIPLE CBI PASSPORTS, THANKS TO CONSULTANT WITH TEHRAN OFFICE

If you have not read my article about Swallow Immigration Agency, Inc., you can access it here. Swallow's principal, Nousheen Pourjahani, has now been enrolled as a Promoter, or Authorized Agent, for all the East Caribbean nations that offer CBI passports: St Kitts & Nevis, Antigua & Barbuda, Dominica, St Lucia and Grenada.

Swallow maintains an office (showing no signeage, as shown in my last article) in Tehran, where Pourjahani commutes to, from her Canadian office. The extremely limited amount of information uncovered, regarding the sale of CBI passports, has confirmed that some nationals from high-risk or sanctioned countries, have obtained CBI documents from more than one East Caribbean jurisdiction. They do not disclose that they are already holding a CBI passport when applying for one in another country.

The possession of multiple CBI passports enables career criminals, terrorist financiers, fugitives from justice to confuse potential law enforcement investigators, by returning on a different passport than the one they used on their outbound trips. Given the large number of Iranians who have sought CBI passports, and the Iranian Authorized Agents and Promoters who stand ready to assist them, notwithstanding United Nations Sanctions, US OFAC sanctions, and EU sanctions, for the lucrative commissions.

With historically grossly inadequate due diligence, in virtually all the CBI jurisdictions, we cannot truly know how many completely unsuitable, and actually dangerous, Iranian nationals working for the regime, have multiple CBI passports.

Nousheen Pourjahani

   Considering that their future bad acts are foreseeable, will CBI agencies, and responsible government officials, face civil suits after their CBI clients commit a terrorist attack, cyber crime, Ponzi scheme, or other dark crimes ? They might have to disgorge all those excessive fees to victims.  Think about it, all you voters who perpetuate those schemes by reelecting leaders who ignore the fatal flaws in CBI programs.  
 

  

WILL THE EAST CARIBBEAN REPUBLICS ISSUE CBI PASSPORTS TO HAMAS MILLIONAIRES ?

The threats posed by Middle Eastern terrorist organizations are worldwide in scope, and it is necessary to be watchful of any developments which might indicate that Specially Designated Global Terrorist Organizations are expanding into new areas or regions. It is especially important to guard against new terrorist financing operations.

The open arms policies, of the republics of the Eastern Caribbean, regarding who they sell their lucrative Citizenship by Investment passports to, have resulted in a number of candidates being approved that the global financial community regards as high risk, or even career criminals, not deserving of such camouflage for their dark activities.

It may now get worse; a review of recent media indicates that a new high-risk, and potentially lethal, class of CBI applicants may have the opportunity to disguise themselves in sheep's clothing; Hamas, the Palestinian terrorist organization, whose bloody, radical Islamist history has earned it the SDGT designation in the United States, as well as in other Western countries.

Consider these recent new items:

(1) Mohammed Asaria, the Vice Chairman of Range Developments*, the Dubai-based builder of luxury projects in the East Caribbean, funded in part through CBI applicants, in a recent interview stated openly that he has given priority to Palestinians, as CBI investors, due to the fact that many of them do not hold Jordanian passports, but only travel documents. Range's Black Bay project, in St. Lucia, has become its latest major undertaking; St. Lucia's new CBI program was only launched last year, and the country is anxious for it to succeed as a major source of cash flow for its economy. A prominent Dubai-based financial advisory firm, specializing in expats, has purchased a private bank facility there, possibly in anticipation of the flow of Middle Eastern capital into the new CBI jurisdiction.

(2) A recent visit to St. Vincent, of a Palestinian contingent from a financial investment firm, openly expressed interest in what would be a CBI-funded construction project on the island, with the investors reportedly receiving Vincentian passports.

Anyone familiar with individual wealth profiles from the Palestinian Territories knows that, with rare exceptions, the vast majority of the millionaires who live there, reside in Gaza. Those individuals, who became affluent due to their membership in Hamas, reportedly earned their money through multiple illicit activities that render their assets criminal proceeds: drug trafficking, diversion of international aid money. illegal taxation of the civilian population, and receipt of funds from State Sponsors of Terrorism, to name a few. 

Therefore, not only is their money unacceptable in any East Caribbean CBI program, their newfound CBI passports could be used to facilitate the movement of terrorist financing, placing the jurisdiction squarely in the cross-hairs of American counter-terrorism investigations, as well as close US monitoring of international financial transactions, for seizure purposes.
 
Also, any suspected presence of known Hamas agents in the region could invite a major American response, and attach credibility to the persistent rumors of the existence of a hidden Hamas training facility in St. Lucia. The Global War on Terrorism is seldom gentle in its application of force. 

Given the abysmal history of regional due diligence, in examining CBI applicants, and the pervasive influence of corruption in EC governments, we could see terrorists holding those prized CBI passports, after payment of bribes and kickbacks. Additionally, given the imprecise transliteration of names, from Arabic to English, one should expect new, completely clean names on those passports, making proper identification impossible.

It is up to the leadership of those countries, and their CBI programs, to act as gatekeepers, to see that no affluent terrorists obtain those precious identity documents. Will they keep out Hamas ? We cannot say, but we will be watching.
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* For further reading: Americans sending Time-Share Purchase Deposits to Sanctioned Iranian Company

CARIBBEAN CBI AT A CROSSROADS; REFORM OR CANCELLATION, WILL IT REALLY COME TO THAT?

Each and every one of the five East Caribbean CBI or CIp programs have been repeatedly condemned for either systemic fraud, massive money laundering or rampant corruption, or a combination thereof. Reform appears to be the only way out, as the forces of accountability, coming finally from both sides of the Atlantic, will soon combine to render the most valuable (to investors) benefits of CBI either inoperative, or the cause of major problems for the native-born citizens of the five EC CBI states. Without visa-free access to Europe or the ability of its citizens to enter the United States for any lawful purpose, the failures of CBI are about to have unintended consequences its proponents will not be happy to see in operation.

Let's look at each state's situation:

(1) SAINT KITTS AND NEVIS: Its corrupt relationship with Chinese-owned CARIBBEAN GALAXY GROUP exposed in the MSR MEDIA litigation in the United States, and SKN Judicial Proceeding, with the current and two former prime ministers implicated in a multi-billion dollar fraud, money laundering and corruption case, the CBI program is a fatal disaster waiting to happen.

(2) SAINT LUCIA: The spinoff from the MSR MEDIA case, the corruption of its Minister for Investment, also getting into bed with GALAXY, and facing a lawsuit from a former national leader, the program has been suspended indefinitely, while the population cause for resignations.

(3) ANTIGUA: Still smarting from the MEHUL CHOKSI CBI scandal, a new §1782 proceeding threatens to expose decades of official corruption, implicating the sitting PM, and his associates.

(4) DOMINICA: With its citizens objecting to the illegal behaviour of the Dubai-based CBI company with a monopoly, new information has emerged regarding an unsolved homicide connected to a powerful CBI stakeholder with a radical survivalist agenda and project.

(5) GRENADA: Tied to yet another illegal discounting scheme, this one with Chinese-controlled Dubai-based HENG SHENG GROUP, and with a host of dodgy Eastern European CBI skeletons in its closet, Grenada may be the only East Caribbean state to survive the approaching anti-CBI storm. Whether it does is up to its leaders.

We have only touched briefly on the massive problems of the CBI states; there are many, many more under the waterline. What the future will bring we cannot say, but you don't have to be a weatherman to know which way the wind is blowing.

AS INDIANS FLOCK TO APPLY AT CBI PROGRAMS, THEY IGNORE THE POSSIBLE ADVERSE CONSEQUENCES

 
Wealthy nations from India are applying for Citizenship by Investment (CBI) passports in record numbers in 2018, according several of the world's largest CBI consultancies. The usual reason is visa-free access to the European Union Schengen Zone and the countries of the Commonwealth of nations, former UK colonies.

The problem is that India does not recognize dual citizenship, and should the government learn that a citizen of India holds another nationality, they are in jeopardy of losing their Indian citizenship. While the impact of that law may not concern most CBI applicants, if they later acquire a CBI passport, and subsequently have their Indian citizenship revoked, tey could become stateless, if the CBI jurisdiction cancels their passport for any reason.

The East Caribbean CBI states have been known to cancel a CBI passport if there is information that the holder has been charged with a serious crime abroad. This governmental action has been known to occur when arrest warrants become public knowlege, and long before any conviction occurs. The Mehul Choksi case, where Antigua could later revoke his CBU passport, could leave Choksi stateless, notwithstanding his vast wealth, allegedly obtained through bank fraud.

Unfortunately, this possible outcome is not explained to CBI applicants from India, as they are told only that their CBI passport can be revoked if they make a misstatement of material fact on their CBI application. Most CBI applicants are not represented by an attorney when they make their application, and therefore potential negative risks are rarely explained to them.

IT'S TIME FOR BANK OF AMERICA TO TAKE ACTION AGAINST THE ST. KITTS AND ST. LUCIA CORRUPT GOVERNMENT OFFICIALS AND FRAUDULENT CBI ACTORS LIKE CARIBBEAN GALAXY INVOLVED iN THE MULTI-BILLION DOLLAR FRAUD

The recent public disclosure of incriminating evidence, implicating a number of Caribbean government officials, CBI processing agents, lawyers, and CBI Chinese promoters, involved in the sale of illegally-discounted CBI/CIP passports, concerning payments that have been illegally processed through Bank of America correspondent accounts, has made it crystal clear that such funds, which by definition constitute money laundering and corruption offenses in the United States, are more than sufficient for the bank to immediately block all the bad actors of the CBI industry. Therefore, the bank must deny them access through those correspondent accounts, and also close their personal US bank accounts, forthwith. They can no longer be allowed to use the US financial system to facilitate fraud, money laundering and corruption, in the CBI industry.

Please note that we are not calling for the termination of correspondent accounts, for such an action would seriously injure the people of Saint Kitts & Nevis, and of Saint Lucia. Rather, we are advocating the denial of those corrupt individuals access to the American financial system, which they are abusing for the purposes of making investments with the proceeds of crime, and to facilitate their illegal passport sales schemes. According to a CBI veteran in Dubai, the scheme included clients, sales agents, promoters and government, "and by government, I don't [just] mean the PM or the responsible minister(s), it's the entire cabinet."

We note that Bank of America has already blocked financial deposits for all CBI transactions in the Commonwealth of Dominica, and we strongly recommend that such action be immediately undertaken by the bank, to block all such illicit actions, regarding all CBI payments for St. Kitts and St. Lucia's CIP programs involving the bad actors. Contained in a two-year investigative report are the identities of forty (40) individuals and companies implicated in the CBI scandal, which are about to be transmitted to the Financial Crimes Enforcement Network, (FinCEN), and to the Office of Foreign Assets Control, or OFAC. I have been following the CBI industry for many years; I call upon Bank of America to take decisive action, to block and therefore deny access to the US banking system to everyone involved in the fraud; the sales agents, government officials, the CBI processing agents, the lawyers, the Chinese and Middle Eastern Companies that are involved in the fraud, and everyone who has been identified as participants in the largest fraud in the forty-year history of the economic citizenship industry, and not to block the correspondent banking access of the people of St. Kitts and St. Lucia.