Tag: financial services Antigua

This blog features Issue 17 of The Citizen from September 2023 which focuses on Antigua Economic Growth. The issue explores how these sectors have contributed to the nation’s development, including insights into the evolving CBI programs, investments in real estate and sustainable infrastructure, and the expansion of the financial services sector. How Antigua & Barbuda Can Stay Ahead in the New Age of Citizenship Citizenship by the investment industry was the product of a globalizing world. It all started in the 1980s when borders were beginning to blur. Capital and people were beginning to fly around the globe, and travel became more possible than ever. Business was truly multinational. ISLAND NATIONS: FLAUNT WHAT YOU’VE GOT What does a wise country with no significant population or natural resources do in a globalized world? The answer is simple: set up itself in the most appealing way possible to promote business. A passport was the key to what people wanted, three things in particular: privacy, visa-free travel, and freedom from excessive hassle. Out of these motivations, many programmes were born. Last of the independent Caribbean states to declare independence from Britain in 1983, St Kitts & Nevis hit the ground running and understood the assignment. It was the perfect moment to capitalize on one of the island economy’s most valuable assets: its citizenship and all the privileges that came with it. Antigua & Barbuda’s programme coupled well with the country’s leadership in the region for logistics, tourism, and transport, and a passport with some unique visa-free destinations such as South Africa. An industry was born. Clients were beginning to get what they wanted without the uncertainties of regular naturalization and the investments of time, money, and energy normally associated with it. Clients wanted to be part of the Commonwealth and go to the UK, and they got it. Clients wanted access to Europe; they got it. And money was pouring into economies that needed it. WHAT HAPPENED NEXT?  Remember, new investor citizens didn’t just want to travel – they wanted the gatekeepers of desired institutions to perceive them in a completely different way. Opening a company as a Nigerian citizen? Banking as an Iraqi? Trading in and out of Iran? Easier said than done with certain identities. But the CBI could solve it all – almost. Obviously, nothing that simple ever lasts. CBI experienced its share of hits as time went on. Simplicity often gives way to complexity over time. And requirements only grew deeper as the digital information era began to take hold in the late 2000s. Admittedly, some of it was probably needed – the industry could not manage long-term growth unless it was managed properly. Antigua & Barbuda revamped its due diligence in the latter part of the last decade and joined in Caribbean-wide efforts to upgrade the product landscape. GOAL-POST ALWAYS MOVING, CARROT NEVER COMING?  But now, the Tradewinds of Caribbean citizenship by investment programmes are changing. The introduction of US-led ‘6 Principles’ – backed by UK- and EU-based institutions – is changing the conversation towards one of an external locus of control, and I think it’s not for the best. Few would oppose proper due diligence protocols that protect a nation’s integrity and a programme’s reputation. But we all know that something has changed and that it goes far beyond these basic ideas.  First, they came for Vanuatu, which many saw as an easy target or perhaps a harbinger of the EU’s rejection of island-based CBI. And now the inevitable has come: rumblings of complete EU visa-free suspension for Caribbean CBIs have changed the field.  Anyone having any familiarity with the European Commission knows that this charade has long ceased to have anything to do with due diligence. The EU’s hypocrisy for complaining about well-vetted, wealthy immigrants coming through the ‘backdoor’ means nothing with even the most cursory look at their ignorance of migration crises and illegal immigration, which remain barely addressed. Retaining the core value proposition of CBI itself is existential to the survival of this entire multi-billion-dollar industry. So how can Antigua & Barbuda stay competitive as a citizenship programme? Value client privacy and efficiency  One of the foundational value propositions of citizenship by investment is privacy. In a world where everything is trackable and traceable, many people turn to our programmes to get better control of their identity. Privacy does not mean fraud.  Privacy does not mean illegality. Privacy does not mean ‘secrecy’. Privacy includes many things – including the right to change or choose your nationality, conceal personal information from prying eyes, and much more. Once you begin to factor in the weight of all the onerous and lengthy requirements for due diligence, the ‘checkbox checked’ personal interviews of questionable utility and several other constantly-evolving definitions of ‘genuine links’ or ‘proper vetting’, the whole notion of privacy begins to degrade, and clients don’t like that. Stop obsessing over Schengen access I’ve written before about this topic and have developed a small bit of niche notoriety with it. But the point here is not whether you or I personally like traveling to Europe. It’s about whether this feature is the most important (or, for some people, the only) reason to market or buy citizenship by investment. True ‘visa-free’ Schengen access itself is, in any case, about to sunset with the introduction of ETIAS, a sort of electronic pre-authorisation not unlike that of Australia’s ETA or America’s ESTA. Remember: true visa-free travel died after COVID-19. If you need to present a pre-authorisation or paperwork at the border, that’s a visa. Regardless, shouldn’t anyone with US$150,000+ to their name who passes extensive due diligence be more than able to obtain a Schengen visa or any visa they want? I have heard many with far less get far further than that. Visa-free Schengen in 2023 isn’t make-or-break for anything – or at least it shouldn’t be. It is not the only reason to get Antiguan citizenship. Do not fall for excessive hassle in KYC policy  I think