by Linda Straker
- MOU will set minimum CBI investment threshold to US$200,000
- Agreement signed on 20 March
- Grenada’s rebranded CBI programme is now a government agency
Prime Minister Dickon Mitchell has signed a Memorandum of Understanding (MOU) that will assign or establish a competent regional authority for members of the OECS with Citizenship by Investment (CBI) programmes and set the minimum investment threshold in the Citizenship by Investment programme to US$200,000.
“The parties agree to assign or to establish a regional competent authority to set standards in accordance with international requirements and best practices and to regulate the programmes. This regional competent authority is to be established or identified no later than 30 June 2024,” said the agreement which was signed on 20 March.
The MOU is a statement of intent and does not create legal obligations under international or domestic law. “It does not constitute a legally binding agreement and is not enforceable in any court of law.” The MOU provides a clause for it to be amended or terminated by unanimous consent of the parties who signed the agreement, and disputes arising from or in connection with it shall be amicably resolved through negotiations.
In the area of regulations of agents, marketing, and promotions promotion, the agreement said that the participating countries will establish common standards to manage the communications and promotion of the CBI programmes.
“Such standards shall prohibit marketing of CBIPS for granting of ‘Visa-free-access’ and the use of photographs of parties’ passports in advertisements,” said the agreement which was not signed by St Lucia.
With regard to the minimum threshold, the agreement will potentially increase it for the National Transformation Fund by US$50,000, currently US$150,000, while for real estate investment, it is currently US$220,000.
The signing occurred on the same day that Grenada rebranded its CBI programme and converted the unit into a government agency instead of a unit under the Office of the Prime Minister. The Prime Minister is responsible for citizenship.
The signing has occurred against the background of the EU member states’ ambassadors (Coreper) agreement to draft a regulation that will update the mechanism that allows the EU to suspend visa-free travel for countries whose nationals are exempt from the visa obligation when travelling to the Schengen area.
Currently, the EU has a visa-free regime in place with Grenada and all OECS nations with CBI programmes. Nationals from these countries can enter the Schengen area for short stays of up to 90 days in any 180 days without a visa. An individual who gains Grenada’s citizenship through the CBI programme will enjoy the same benefits as outlined in the EU visa-free regime.
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