OECS Statement Confirms St Lucia’s Signing of MoA, Raises More Questions

According to a media release from the Organization of Eastern Caribbean States (OECS), the Caribbean Five are swiftly implementing the Memorandum of Agreement (MoA) signed in March 2024.

The MoA’s signatories include Antigua and Barbuda, the Commonwealth of Dominica, Grenada, St. Kitts and Nevis, and Saint Lucia.

St Lucia did not initially sign the MoA but put ink to paper on June 3 to make good on their promise.

The MoA, which aims to promote mutual cooperation, information sharing, adherence to best practices, and regulatory oversight, stipulates that as of July 1, 2024, the minimum price for any CBI option shall be US$200,000.

This applies to government funds, projects, or private development projects within the participating countries.

Kevin Hosam, Founder and Chairman of EC Holdings, questions whether the countries will be able to make the deadline: “Do the four remaining programs [Antigua & Barbuda, Dominica, Grenada, and St Lucia] need to go to Parliament to change legislation to accommodate the price increase?”

He notes that Antigua and Barbuda must amend the legislation, but they have not done so yet.

Patrick Peters, CEO of ClientReferrals, wants more clarification. He says this “has been an interesting rollercoaster ride, and it seems we are not done yet because the press release generates many questions.”

The OECS statement emphasizes that discounting the agreed minimum price is illegal and urges market actors, agents, and developers to report any attempts at or instances of discounting to the relevant authorities in the participating countries.

The participating governments will appoint a seven-member Interim Regulatory Commission, comprising representatives from the five participating countries, the OECS Commission, and the Eastern Caribbean Central Bank to establish a regional regulatory body.

The commission will operate pending the enactment of enabling legislation for the regional regulator.

The regional regulator’s functions will include:

• Developing and enforcing regional standards for CBI programs.
• Monitoring compliance with legislation and international agreements.
• Investigating complaints.
• Facilitating information sharing and engagement with regional and international stakeholders.

The OECS reports that work streams have been developed and assigned for all articles of the MoA, and the CBI countries will provide periodic updates on the agreement’s implementation.

Peters hopes the OECS updates will clarify some issues. He said: “The follow-up decisions and announcements to be made in the coming days and weeks will determine the all-important details we need in the short term, such as how can I ensure my client meets the June 30 deadline? And the long term as well, for example, what’s the price exactly?”

His plan for the moment is to “make a big pot of coffee and submit files. Our actions after that will depend on the rollercoaster’s next turn.”