With the UK’s Sanctions and Anti Money Laundering Bill and threat of EU blacklists casting their shadows on Cayman and other jurisdictions in the Caribbean, so-called “cash for citizenship” schemes are now under the microscope.
Cayman has not bought into these schemes, but others in the region have.
And the Caribbean is at the heart of the citizenship by investment industry.
Islands like St. Kitts and Nevis offer citizenship pathways, in exchange for investment in infrastructure.
And their popularity is on the up, with some indicators suggesting a quarter of St. Kitts’ revenue comes from their scheme.
Andrew Henderson is the founder of Nomad Capitalist. The company offers advisory and relocation services for investors seeking perks of Caribbean citizenship, like visa-free travel and favourable tax arrangements.
“I think the Caribbean remains the best value in terms of being left alone, visa free travel… quite frankly I’m seeing options in the EU, like Moldova and I don’t see the value. The Caribbean, for someone who wants a straightforward transaction, is probably still the best,” Mr. Henderson explained.
And Mr. Henderson is also one such investor, choosing the programme offered by St. Lucia.
He said, for developing countries, this revenue stream was vital, even if critics have their doubts.
“There’s a certain vulgarity in some people’s mind, but these are countries that want and need money. St Vincent and the Grenadines is the last sovereign nation, they need money that can be used to build airports, build roads, build schools, bring tourists…” he added.
Critics say citizenship by investment jeopardises global security and facilitates illicit financial transactions.
Cayman has, so far, resisted the allure.
“The Caymans have residency options, but the Caymans have decided: we’ll be the high brow in the Caribbean, we’re not going to cheapen our brand and they’ve done very well with that,” Mr. Henderson said.
But Mr. Henderson hinted that may not necessarily last, with the shape of things to come.
“These countries have decided they have few other ways, partially because governments like the UK have decided: we don’t like you’re offshore policies. So whats next? Ok, we’ll sell passports.”
Mr. Henderson said, having gone through the process himself, it requires thorough and rigorous due-diligence; he said the schemes were robust enough to make sure all successful applicants were above-board.
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