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Transcript

EXCLUSIVE: How St Kitts’ 40-Year CIP Has Transformed · IMI Podcasts

• 0:00
  SPEAKER_00: So I'm Calvin Senjus.
• 0:01
  SPEAKER_00: I am the executive chairman for the Citizenship, My Investment Unit in St.
• 0:05
  SPEAKER_00: Kitts and Nevis.
• 0:07
  SPEAKER_00: When I came into the program, it was a very volatile time.
• 0:12
  SPEAKER_00: At that point in time, the Prime Minister made some very, very difficult decisions from a revenue perspective for St.
• 0:19
  SPEAKER_00: Kitts and Nevis in terms of making significant reforms that had an impact on the revenue.
• 0:26
  SPEAKER_00: But he was very clear that this would be a short-term because we needed to ensure that there's a long-term component.
• 0:34
  SPEAKER_00: Now, in terms of the playbook, so to speak, it was really around three core things.
• 0:40
  SPEAKER_00: It's one people.
• 0:42
  SPEAKER_00: So we wanted to ensure that we had the right individual, the talent in the institution.
• 0:49
  SPEAKER_00: So the organization transitioned from a government-owned entity into a statutory cooperation.
• 0:55
  SPEAKER_00: And that's vital.
• 0:56
  SPEAKER_00: What that gave us is pretty much a high degree of autonomy outside of the government bureaucracy.
• 1:03
  SPEAKER_00: So we were able to obviously manage and make various changes that we saw was required and important from an efficiency perspective, from a transparency perspective, but most importantly, the collaboration.
• 1:18
  SPEAKER_00: We continue to ensure that we are speaking and partnering with our international partner.
• 1:24
  SPEAKER_00: We want to ensure that we align to the EU standards in terms of due diligence.
• 1:29
  SPEAKER_00: We also want to ensure that we provide that protection as it relates to our borders in terms of the applicants coming in.
• 1:35
  SPEAKER_00: The other piece was another P, which is the process.
• 1:38
  SPEAKER_00: And process was critical because we wanted to ensure that we innovate.
• 1:49
  SPEAKER_00: So we wanted to make sure that we innovate the program but align it to international standards.
• 1:54
  SPEAKER_00: We wanted to make sure that we continue to invest in the rigor of our multi-layer enhanced diligence, and that was critical.
• 2:03
  SPEAKER_00: So we introduced obviously in-person or virtual interview.
• 2:07
  SPEAKER_00: That was critical.
• 2:08
  SPEAKER_00: We also wanted to ensure that we understand where the individual source of wealth is so that there is a clear understanding that there is no type of anti-money laundering or counter-finance terrorism aspect of where these funds were coming in.
• 2:22
  SPEAKER_00: We've also partnered with the EU-based due diligence firm just to ensure that we cover the breadth and scope of all various potential risks.
• 2:32
  SPEAKER_00: To do that, what we're seeing is removing to some degree the paper-based aspect.
• 2:38
  SPEAKER_00: So once the application gets into our system, it's no longer requiring that extreme delay of human interaction.
• 2:47
  SPEAKER_00: It is now being vetted from a technology perspective, and it's getting in the right hand of the experts who can immediately do the various vetting and then also ensure that the information goes directly to our international partners, our international law agencies, whether it's Interpol or UN sanctioned list and the due diligence firm.
• 3:08
  SPEAKER_00: What this allows us to do, it really truncates the timeline.
• 3:12
  SPEAKER_00: Once the files are appropriately, we call it a clean file, once we have all the relevant documentation, there is no issues.
• 3:20
  SPEAKER_00: We are seeing the aspect of speed and compliant actually working appropriately because we can immediately get that applicant into the hands of the relevant and due diligence company and international law agency within the same time.
• 3:36
  SPEAKER_00: And that in of itself is where we see efficiency.
• 3:40
  SPEAKER_00: Our application timeline with this is, as I said, between averaging 130 or 120 and even to sometime less as well.
• 3:48
  SPEAKER_00: In terms of the collaboration, the discussions that are happening within the Caribbean and along with our international partners, whether it's the US, the EU, or the UK.
• 4:00
  SPEAKER_00: What I can tell you is we have been in constant dialogue.
• 4:05
  SPEAKER_00: The changes that the market is seeing is really a unified partnership.
• 4:11
  SPEAKER_00: We continue to ensure and demonstrate that St.
• 4:15
  SPEAKER_00: Kitts and Nevis will be compliant to the EU's visa-free agreement.
• 4:20
  SPEAKER_00: That is very clear.
• 4:22
  SPEAKER_00: We have been, and that's on record.
• 4:25
  SPEAKER_00: We have been the champion.
• 4:27
  SPEAKER_00: We have actually been the architect of pushing.
• 4:29
  SPEAKER_00: We are no longer waiting to hear or to sort of say, listen, we would just simply wait to see what will happen.
• 4:37
  SPEAKER_00: We're moving forward.
• 4:38
  SPEAKER_00: I myself have recently have been to the EU and have had shared updates that what we have done, whether it's the advent of our most recent implementation of our border security system, which is state of the art, and then also the biometric collection application that we're bringing in place.
• 4:57
  SPEAKER_00: Because we see the value of firstly protecting our borders, but most importantly, as we speak with our international partners, it's also important that we protect their borders.
• 5:09
  SPEAKER_00: And that is critical that we understand what their concerns are, and then they can hear what our concerns are, and then there is a mutual understanding on all parties.
• 5:20
  SPEAKER_00: So we continually have dialogues to ensure that there is an equilibrium.
• 5:26
  SPEAKER_00: We continually ensure, especially in St.
• 5:28
  SPEAKER_00: Kids and Nevis, that we demonstrate that we are compliant with the regulations.
• 5:33
  SPEAKER_00: We are ensuring that the standard, the EU standards, are being adhered to appropriately.
• 5:38
  SPEAKER_00: And we continue to ensure that we create what has been clearly a desire of genuine link.
• 5:44
  SPEAKER_00: And as a result of that, you know, we've indicated we're going to be introducing the physical residency component.
• 5:50
  SPEAKER_00: And that has been standard across all of the Caribbean programs.
• 5:55
  SPEAKER_00: But we're making sure that everything that we do and any changes that comes from our program is in alignment with the international partners based on our conversation.
• 6:10
  SPEAKER_00: We the regional authority has indicated a standard.
• 6:16
  SPEAKER_00: And there's going to be a basic standard for all Caribbean investment program, which is going to be a physical residency requirement.
• 6:24
  SPEAKER_00: And that would be, you know, a cumulative of 30 days over five years.
• 6:29
  SPEAKER_00: At this point in time, there's nothing specific in the law as yet.
• 6:34
  SPEAKER_00: Once that goes to parliament, then we will provide the update.
• 6:38
  SPEAKER_00: But that's the general framework that has been brought from a public perspective that the regional regulator has indicated that there will be a monitoring of and the implementation of a regional of a physical residency program within those timelines.
• 6:53
  SPEAKER_00: It's going to be a cumulative of, as I said, 30 days over five-year timeline.
• 6:59
  SPEAKER_00: And we felt that in and of itself will provide that truth genuinely.
• 7:04
  SPEAKER_00: But it's not just a checkbox of a couple days over years.
• 7:10
  SPEAKER_00: It is going to go through perhaps cultural orientation, perhaps also ensuring that the individuals can understand the country that they've now become a citizen of.
• 7:20
  SPEAKER_00: When we talk about this new service, it is going to be one of its firsts in the CBI industry.
• 7:26
  SPEAKER_00: Because what it offers, it offers a membership, an exclusive membership, or an additional offering to our investors.
• 7:36
  SPEAKER_00: These are high net worth individuals.
• 7:38
  SPEAKER_00: And so we're being very selective who has access to this membership program.
• 7:44
  SPEAKER_00: Firstly, you know, it is going to be a nomination aspect of who can get access to it.
• 7:51
  SPEAKER_00: The opportunity that it will provide is they will have a dedicated VIP concept manager, 24-7, who can answer their questions, providing them the relevant answers around financial services.
• 8:07
  SPEAKER_00: Perhaps they may want to understand estate planning trust.
• 8:11
  SPEAKER_00: We have a very robust trust ecosystem in our Nevis, Sister Island.
• 8:16
  SPEAKER_00: Also providing opportunities for them to do further investment.
• 8:19
  SPEAKER_00: What we heard from our applicants is our new citizens is hey, we want to continue to find ways that we can diversify our portfolios.
• 8:30
  SPEAKER_00: And this gives them an opportunity to get real-time updates on very exclusive, whether it's real estate investment opportunities, new business, new technology opportunities, that they can see a benefit.
• 8:43
  SPEAKER_00: And also to curated what we call VIP experience for these very high net worth individuals, even to the aspect of we may be exploring various partnerships with international ranking facilities, curated so that their safety and security, now being a citizen of safety in San Nevis, not only makes it a one-time deal, but it's a continuation and being part of this membership.
• 9:12
  SPEAKER_00: So more will be coming out, as I said, uh with this concierge program in terms of individuals being able to participate in it.
• 9:20
  SPEAKER_00: The process, so as I indicated from a regional regulator perspective, residency perspective, all of the heads of government have signed an agreement from the authority.
• 9:30
  SPEAKER_00: And what needs to happen is that it goes to each of their parliaments and then enshrine it.
• 9:35
  SPEAKER_00: Anticipate this would be in short order, perhaps before the end of the year.
• 9:39
  SPEAKER_00: What I would say as a statutory corporation, we now have that full autonomy.
• 9:45
  SPEAKER_00: We have the autonomy to make decision.
• 9:47
  SPEAKER_00: We saw that changes help.
• 9:49
  SPEAKER_00: And with those changes, we're now seeing an uptick in our numbers.
• 9:53
  SPEAKER_00: We want to make sure we provide audited numbers, an objective view.
• 9:58
  SPEAKER_00: So we are in the process of getting an independent audit completed.
• 10:03
  SPEAKER_00: And once that is completed, then we will begin publishing, being that transparency.
• 10:08
  SPEAKER_00: Because it is important that we have that done appropriately and that people have a confidence that these numbers are not just numbers that are being sent, but these are audited numbers and appropriate numbers.
• 10:19
  SPEAKER_00: So what I can share in terms of statistics, we have seen a balance in our numbers across both our contribution and our public benefit option.
• 10:28
  SPEAKER_00: And it's it's relatively a positive thing because what it tells us is individuals wish to make sure that participate in us becoming a sustainable island state, and they're making that investment from the contribution side.