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“It’s Not a Silver Bullet”: Industry Veterans React to St Kitts CBI Residency Requirement

Major advocates for a "light-touch" approach, while Arton labels St Kitts residency requirements a "vacation obligation."

Major advocates for a “light-touch” approach, while Arton labels St Kitts residency requirements a “vacation obligation.”

Prime Minister Terrance Drew has confirmed that Saint Kitts & Nevis will implement mandatory residency requirements for all future citizenship by investment applicants.

The policy shift comes alongside a broader regional proposal among the Caribbean Five nations to establish uniform 30-day residency obligations under a new regulatory authority.

Drew announced that residency clauses will form part of new legislation passing “within a few weeks.” The changes abandon the investment-only model that has defined Caribbean CBI programs, requiring new citizens to maintain physical presence and engage in integration activities.

Eric Major, CEO and Chairman of Latitude, believes the reforms could address long-standing American concerns. He notes that former US Ambassador to Barbados Linda Taglialatela advocated for exactly these changes back in 2014, arguing that requiring individuals to visit the country and undergo final interviews would make programs “more sound.”

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Regional Coordination Takes Shape

The Saint Kitts announcement coincides with a broader regional initiative. A draft agreement between the Caribbean Five (Antigua & Barbuda, Dominica, Grenada, Saint Kitts & Nevis, and Saint Lucia) proposes establishing the Eastern Caribbean Citizenship by Investment Regulatory Authority (EC CIRA).

This body would mandate 30-day residency requirements for all new citizens within their first five years of naturalization.

The proposed framework extends beyond physical presence. New citizens must participate in mandatory integration programs covering civic education about laws, history, and constitutional principles, plus cultural orientation activities.

Failure to comply could trigger administrative fines up to 10% of the qualifying investment value and potential passport revocation.

Armand Arton, CEO of Arton Capital, expects other Caribbean nations to follow Saint Kitts’ lead. He emphasizes that “the Caribbean CBI nations understand that their strength lies in regional cohesion” and predicts similar reforms are “only a matter of time.”

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Industry Veterans Divided on Implementation Scope

The two industry veterans disagree on how extensive residency requirements should become. Major advocates for modest obligations, arguing that anything exceeding 30 days “would be detrimental and would likely erase market interest.”

He prefers requirements closer to 14 days, combined with passport collection visits, in-person oath ceremonies, and biometric data provision.

The Latitude CEO emphasizes that requirements should focus on “reasonable presence requirement while satisfying other key touch points and deliverables, such as traveling to the island to collect the passport, completing the oath of allegiance in person, providing biometric data, and fulfilling a defined number of days on the ground.”

This approach would “meet the spirit of the requirement proposed by the former U.S. Ambassador, while keeping the programs attractive and accessible.”

Arton anticipates more robust mandates. He believes “a symbolic minimum requirement may fall short” of demonstrating credibility to international stakeholders and expects stronger presence requirements to effectively address mounting external pressure.

The proposed regional agreement would create a compliance-linked passport renewal system. Initial five-year passports would extend to ten years only upon verification that residency and integration requirements have been fulfilled.

Three countries (Saint Kitts & Nevis, Saint Lucia, and Dominica) currently issue ten-year passports from the start, but would need to adopt the five-year initial term.

Market Impact Remains Uncertain

Both experts downplay concerns about applicant deterrence, though they offer different rationales. Major believes harmonized requirements under 30 days could enhance program legitimacy while preserving commercial appeal.

He argues that properly implemented measures “may even enhance the legitimacy of the programs in the eyes of the US, EU and UK, while still preserving their commercial appeal” through “a light-touch, harmonized approach could strike the right balance between credibility and competitiveness.”

The key condition requires all five Caribbean CBI countries adopt requirements collectively, preventing any single nation from suffering competitive disadvantage.

Arton frames residency obligations as manageable for American investors, noting that the Caribbean represents familiar territory rather than truly foreign destinations.

He describes potential requirements as “a vacation obligation rather than a regulatory burden” and expects the market to adapt as it has throughout the sector’s evolution.

The Arton Capital CEO emphasizes that “the market is resilient and adaptive” and points to precedent from European residency programs, where “demand is still doubling every five years” despite higher standards.

He believes that “a reasonable presence requirement is unlikely to dampen demand long-term” and could “actually enhance the programme’s credibility and attract new investors.”

Arton notes that “history has shown that the market adjusts and continues to grow in response to higher standards” and anticipates that “client expectations will also evolve with the sector” as requirements become standardized across the region.

The reforms emerged from a weekend coordination meeting among regional leaders with CBI programs, who agreed on uniform changes to address US concerns.

Both Saint Kitts and Dominica confirmed they received no official communication from Washington regarding reported travel restrictions affecting 36 countries.

Enforcement Powers Create New Oversight

The proposed regional authority would wield unprecedented enforcement capabilities. EC CIRA could conduct investigations, impose sanctions, and issue binding directives to national CBI units. The agreement grants inspectors authority to require document production, enter premises, and seize records during investigations.

A centralized database managed by CARICOM IMPACS would store biometric data and application histories, creating regional intelligence-sharing mechanisms. States could not accept applications from individuals denied citizenship by other participating countries without written authority approval.

The agreement also introduces mandatory escrow requirements, with qualifying investments deposited into designated accounts managed according to authority specifications. This centralizes financial oversight and prevents premature fund release before due diligence completion.

Legislative Hurdles Could Prolong Implementation

Implementation requires complex multilateral ratification across five parliamentary systems. Each participating state must formally ratify the agreement through domestic legislative processes after government representatives sign to indicate initial political support.

The agreement takes effect “on the thirtieth day following the date of deposit of the fifth instrument of ratification,” meaning at least five states must complete their parliamentary procedures. States may implement provisions provisionally while formal approval proceeds, allowing operational aspects like board formation to commence.

Drew positioned Saint Kitts’ reforms as strategic rather than reactive, declaring that residency requirements represent “a path that we have been traveling since day one.” He emphasized transparency, noting that “the CBI is not a private club, it is the business of the people.”

The success of ratification efforts across multiple jurisdictions will determine whether this regulatory revolution advances from proposal to binding law, fundamentally altering the relationship between Caribbean citizenship programs and their international investors.

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